Today's topic is on credit cards! Credit cards are a convenient way to make purchases and are a great way to build credit. If you haven't already, sign up for an account with Borrowell to compare credit cards that you'll likely be approved for and find the best one for you!
Why is getting a credit card important?
1. Building credit early has major advantages for later in life
Just like having a good grade point average (GPA), a strong credit score will open doors to many opportunities in university life and beyond, including:
Renting or buying an apartment
Renting or buying a car
Getting a cell phone plan
Booking hotels
Getting a small-business loan
A strong and lengthy credit history is part of what determines your credit score, so responsibly using a credit card while in college or university can set you up for greater financial options later on.
2. A credit card is a great learning tool
Having a credit card will help you understand how credit works. In university, you’ll need to learn to develop discipline and not overspend. You need to learn to make on-time payments at the end of billing cycles and be selective about your spending habits. Late credit card payments may also affect your credit score negatively.
If you don’t pay your balance off right away, interest charges will add to your monthly bills, often at a 19.9% interest rate. To avoid these interest charges, you should always try to pay off your entire balance – not just the minimum amount – when your bill is due.
3. A credit card can offer peace of mind when planning for the future
A credit card can be a great tool when an emergency situation calls for more cash than available in your savings, especially as a student. It’s on you to define what constitutes an emergency situation to rely on your card.
Try to protect the peace of mind a credit card can offer by having a plan to repay the debt quickly and affordably.
How Can I Apply For One
With Borrowell, you can browse and compare a wide range of different credit cards based on your credit score. While there are many types of credit cards, such as travel and cash back, there are likely only a few basic categories that currently matter to you.
No Fee: A credit card that has no annual fee attached to it. This perk can save you over $100 a year.
Low-Interest: Cards that offer low starting APRs that increase after a certain period or a single low fixed APR. These cards can be used when consumers need to make large purchases, which they can pay back over time.
Credit Builder: A credit card ideal for individuals with zero credit or low-credit who are looking to build their credit. These cards are typically secured, meaning that users provide a cash deposit to lenders who offer this type of credit card.
The Bottom Line
As a student in university or college, it is a good idea to compare credit cards suited to your needs – but remember to use credit responsibly and to always make your payments on-time.
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