The studentship is a time when adolescents become adults and are ready to make decisions themselves and be responsible for their actions.
The studentship is a time when adolescents become adults and are ready to make decisions themselves and be responsible for their actions. First credit card is very related to this process. It enables young people to be financially self-reliant, to plan their spending wisely, to service small loans, and to build a positive credit history.
The credit card offers for students – subtleties, and nuances
Recently, many financial institutions have announced their readiness to issue best credit cards for students to those who have reached the 21 age. It is self-evident that the majority of young people receive education and are students at this age. The students, as you know, following certain rules, have the opportunity to receive an official income, which is a scholarship.
Also, during the period of studentship, young people have the opportunity to build their own relationships with banks as the students of almost all educational institutions receive scholarship money on a bank card. That’s why experts firmly recommend to learn what is the best credit card for students and issue the credit card in the bank where you are already registered at.
It is quite naïve of freshmen to believe that the bank shall give them “card” loan at their first request. Often financial institutions refuse to issue credit cards for students with bad credit, as the lender has no guarantee that the student will continue to receive an education (because most often a large part of applicants drop out after the first year).
Even if the bank issues the credit card to the student (borrower), the limit of available funds will be low as a scholarship is a quite low income. Although you can affect the amount of borrowed funds by attracting parents as guarantors, they also must have at least an average legal income.
What do students need to know before applying for credit cards?
Basically, the procedure for obtaining a credit card by students does not differ from obtaining the same banking product by other applicants. A potential borrower needs to provide the bank with a couple of documents to confirm his identity and a certificate of income. If the scholarship is the only source of income of the student, it will be possible to take this document in the accounting department of his educational institution. If a potential borrower has another source of income, then he will need to take the appropriate certificate from his employer (provided the work is official, which is very rare for students).
Today, you can often find special programs for issuing best credit cards for students with no credit, designed specifically for the student fraternity. However, despite this, the terms of use of such “plastic” remain the same – almost all best cards for students have the function of a grace period, the duration of which ranges from 50 to 60 days. The main purpose of this payment tool is non-cash payments. Those who want to withdraw money from the card will have to pay a commission. However, the annual rate for top credit cards for students may be slightly higher than for classic cards as the bank may consider issuing credit loan to a student as an excessively risky transaction. That, as you know, is why people make considerable payments.