Student Vs Credit Cards

If you are a student or about to become one and might be thinking of taking out a credit card due to the reason of not working whilst studying, can be a recipe for disaster. If managed correctly and choosing the right package, a credit card could help ease your financial troubles whilst you are busy with your study commitments without getting you into huge credit card debt.

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The most attractive benefit of having buy virtual credit card a credit card is that you can easily spread your costs and fee’s over a certain period of time thus leaving you with more money to spare at the end of every month. Another huge advantage is they are very easy to obtain. In South Africa today, credit history is vital, so spending wisely on your credit card will help you gain an reputable credit history allowing you better advantage of getting a personal loan or finance easily later on in life. Student cards have very low rates too and they provide vital discounts on items students buy the most. E.g. Books, CD’s and clothes.

Banks look to your future, so they offer cards even though they know you have no regular income the banks are still looking out for your future. South Africans who have a degree earn on average between 2.5 and four times more than those who do not complete schooling. Degree-holders are also three times more likely to get a job – in a country where more than one in four people are unemployed. Financial institutions want to gain your loyalty and trust so that you will continue to use them for financial means remembering they helped you when you really needed them.

Of course there are disadvantages. If you do not pay your balance or meet your agreed monthly agreement you can quickly create debt for yourself as with any other credit card. If you budget correctly and do not over exceed your means then the disadvantages are virtually non-existent.

If you are unsure about a student credit card there are other alternatives too. If you work part time whilst studying you could also apply for a regular credit card. Having a regular card however means you could forfeit some of the student benefits from having a student credit card, although you might get a lower interest rate and a better credit limit than a student card. Another alternative is the older alternative i.e. watching what you spend. Monthly budgets and not spending more than you have is also another alternative, although as we all know this is a difficult task. Most student then realize that they can only budget so much and need a credit card to help them out with other unforeseen expenses or if they are unable to work

because of exams coming up. If you use your card sensibly you can really save yourself a lot of money and stress. Having a card allows you the peace of mind knowing that if you need textbooks or pay fee’s etc you haven’t run out of money. It also allows you to build for your future and increase your chances of securing finance in the future if you really need

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