Things Students Need to Know About Credit Cards :: Kenya

The age at which students begin to go to university is extremely crucial. This is the moment when you start making most decisions on your own. You like to experiment and try new things to understand what suits you best. Whether it's buying a new phone or choosing a credit card to buy this phone – it's always good to indulge in a fair amount of research before choosing anything.

Students are usually new to credit cards worldwide right now. It is entirely possible that you make a bad choice unless extensive research is done. When it comes to financial decisions, it is good not to learn the hard way. Talk to your parents to understand the things that every student needs to know about credit cards. There are so many things that one must keep in mind when applying for a student credit card – interest rates, credit debt, fees, and so on.

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Let's talk about the most important things you need to keep in mind before getting a credit card.

Read the Fine Print

The terms and conditions of the credit card may change according to the decision of the issuer. Thus, it is strongly necessary for you to know all the terms set by the issuer of the card. The fine print on the card may include hidden fees and fees you may incur after taking the card. Many banks will not tell you such charges because they want to sell their credit card. Therefore, it is advisable to read the terms and conditions before owning a card.

Attractive Offers

In order to attract new customers, some credit card issuers offer superb welcome gifts such as cashback on online applications or goodies. You could fall prey to such tempting offers and opt for the card. You must understand that with the great power of a credit card comes great responsibilities!

If you take a credit card, chances are you'll do everything you can to buy expensive items. But remember, you must take responsibility for your expenses and pay the bills on time.

Rights and Costs

Understand what the annual fees badociated with the card is probably of utmost importance. You should also check the interest rate applied on the card. Low interest credit cards are ideal for students like you. Any credit card has a price. Reduce the cost badociated with the card, the better it is for you.

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Penalty fees such as late payment fees and overlimit fees are just some of the things that you need to consider when choosing a card. 39, a map.

Overlimit fees prevent most credit card users from exceeding their expenses. As a student, you must always control your expenses, especially when using a card. For example, a product that costs $ 20 could be charged almost double the amount if overlimit charges are levied.

Try to avoid making only the minimum payment

Young people who use a credit card for the first time must realize that if they pay a debt of $ 300 over a long period of time by paying only the minimum due over several months, they could pay a lot more to the credit card. company as an interest. This is because interest on unpaid balances will be charged at a compound rate. In addition, paying the minimum balance is not a good habit. It is ideal to learn how to settle unpaid debts in full at a young age. This teaches better financial management and avoids unnecessary interest payments. Making full payments on your statement balances also helps improve your credit score.

Avoiding Cash Advances

In case you do not have any more cash, the cash advance should never be your first option as it charges you excessively high interest rates that start to break down. accumulate immediately with cash advance fees. The immediate cash flow could solve the problem temporarily, but that will only make the repayments more and more heavy.

It's a good idea to create good credit at a very young age. A good credit history helps to get better long term loan deals. If you use credit cards wisely at this age, you will increase your creditworthiness several times. Banks always trust people with a good credit score because it reduces the risk of default for them.

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If a credit card is not used with care, it can become a liability for you. Fees will continue to accumulate and payments will become more difficult to track. Your credit score will also take a big hit and you will find it hard to take advantage of good deals on long-term credit lines.