Students can certainly get a credit card. They are the same borrowers as any other adults. However, they rarely have income. Therefore loans issued for adolescents are relatively small.
Almost every person at college or university can get a credit card. In order to do so, he has to provide passport and student’s ticket details to the bank. The majority of banks developed unique student credit cards. The person can get Discover it, Citi Thank You or any other credit card.
How Credit For Students Works
When the student opens a credit plastic, he becomes a regular borrower. So he has some obligations. Here they are:
- Make regular monthly payments. A student, as any adult borrower, has to put money on credit plastic each month. If he does not do so, he will be fined.
- Pay the full sum of credit back. The student has to manage to pay his loan back. The banks charge regular interests on students credit cards. So, the final debt will be the sum of actual borrowing plus interest rate.
These are two main obligations the adolescents have. Having credit card already at college or university can educate the adolescents. When they get older, they will know how borrowing mechanisms work. They will be responsible borrowers.
Becoming a responsible borrower from an early age is important, because each person is assigned the credit score. It determines how responsible the borrower is. If the score is high, the banks will gladly issue additional loans for the client.
What Bonuses Students Get
Adolescents, as any other borrowers, are entitled to many bonuses plastics may offer. Here are some of them:
- Discounts. For adolescents, the banks enter into partnerships with many businesses that sell popular students goods and services. When the students make purchases from such enterprises, they get quite attractive discounts.
- Cash back. Students plastics even offer the money return on some of the buyings. The adolescents can spend and get some 2-3 percent return.
- Rewards for good completion of the academic year. If the person gets high grades at the end of the year, he gets 20 or more dollars reward. It is small but still good to receive.
These bonuses make it beneficial for the teenager to use the plastics. Before opening one, the person has to evaluate several cards offers. Than he will choose the most beneficial card.