The advantages to issuing a credit card from early on
In addition to having more money readily available to you, using a credit card as a student gives you the chance to build a positive relationship with your bank and build your money management skills. If you consistently pay the bill on time, getting future banking products such as a loan on a home, a car, or accessing other sorts of financing should be far simpler for you.
However, using your credit card responsibly and sensibly can provide you with important advantages even in your more immediate day-to-day life.
Besides offering loyalty programmes for purchases made with your card, which can regularly earn you significant discounts, as a student you may face periods with increased or unexpected expenses, such as a large utility bill, spending money on books or even a trip with friends that you don't want to miss.
All of the aforementioned are easily attainable, but only with careful credit card management. This entails paying it off promptly and staying within the credit limit. This opens some intriguing possibilities, including interest-free payments at many shops and businesses, but it also lays the groundwork for learning how to handle money early on, teaching one how to fulfil both immediate needs and long-term plans.
In what ways do banks benefit students?
The majority of banks offer specialised products based on deposit accounts, and some of them additionally provide overdraft and credit card issuance options. The availability of payment plans, rewards from loyalty programmes, travel insurance, affordable fees, and more can undoubtedly help offset costs and meet needs like relocating and establishing a new life.
Some advantages of having a credit card include the following:
- the ability to withdraw from ATMs
- interest-free payment plans
- premium interest rates when making purchases
- participation in loyalty programmes
- making use of it abroad
- special perks, discounts, and gifts
- participation in competitions, sweepstakes, and reward programs
- purchasing insurance
- travel insurance
Your first credit card
It’s well worth considering how a credit card will fit into your regular financial routine before applying for one, and learning how to use it wisely to maximise its rewards while laying the groundwork for your strong financial future.