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COLLEGE STUDENTS
If you are 18 years old and are a student you can apply for a credit card. There are several reasons for you to apply for a
couple credit cards while you are in college.
These are the following:
:: Start a Credit History and Increase Your Credit Score
The sooner you apply for and receive credit, the sooner you start your credit history and can began increasing your credit score.
One of the ways credit bureaus calculate your credit score is by how long you have had credit accounts open. They want to see
that you can repay your debts on time. Therefore if you get a credit card now, when you go to buy your first car or house, you will
have a credit history already. This will show whoever you are borrowing money from that they will get their money back. For this
reason, the institution that is lending you money will likely give you a better interest rate on the money they are lending you. This is because they should have less risk that you will not repay your debt. A
lower interest rate will save you money or let you qualify for a loan allowing you to acquire your purchase.
:: Rewards and Cash Back
Since you are going to be spending money anyways, you mine as well put your purchases on a credit card. Some cards will give you
5% cash back on certain purchases (See Cash Back Cards).
This can add up to a nice check after a while. Who wouldn't like getting paid to spend money. Other credit cards will give you some sort of reward, like airline points
(See Airline
Cards).
:: Purchasing Power
While it is not wise to use credit cards to borrow money for everyday purchases, it may come in handy while funds are tight
in your college years. If you are not able to pay off your balance every month you should probably apply for a 0% APR credit card (See 0% APR Credit Cards).
This will minimize the interest charges on your purchases, saving you much needed money.
:: Time of Payment
Most credit cards have a 30 day grace period. This means you have a least a month before you need to actually pay for your purchase.
Have fun now, pay later. Works great as long as you pay in full before they start charging you interest.
:: No Need for Cash
Credit cards are accepted almost everywhere these days. This allows you to make your purchase without cash that can be lost or stolen.
You can't replace cash. You are only liable for $50 of fraudulent activity if your credit card was used for fraud. You can't say that about your check book.
:: Independence
Having a credit card allows you to have access to money that might allow you to do the things you want to. Beware, it is also a big responsibility.
While your parents might not make you pay them back, you can be assured the credit card companies will. Use them wisely.
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