Student credit card account
It is quite apparent that most students would want to open a student bank account in the very beginning their student life. To have an excellent credit history and a really good credit score, you will have to open a student credit card account. These accounts are specifically designed for the needs of the students of those who are attending a university or a college. Also, there are far too many benefits in having a student card that itself comes with various other offers that are present in the market for students like you.
Now if you ask that what is the need of a student card in my life? Will it help me in my life regarding monetary transactions? My answer is that leaving aside attractive benefits, a student card has a lot of benefits to your life with regards to monetary transactions. Having one such account will allow you to construct a positive credit history with all the payments that you make to the issuing lender or the bank. Future lenders look into the history of positive payments so as to determine if you can qualify for lines of credit or even for financing such as the one that is needed to buy a new flat for example. The positive payments that you once make in your student life under the belt of a student card will make you prepared for doing anything in future life from taking personal loans to buying a new car. Thus they give you great advantage in this regard.
That’s not all; a student card is really convenient for you and it also provides you with an easy way to pay for those things that you want right away. The purchase made can be anything; from tuitions and books to other supplies and clothing; it can be used for anything that you may need to purchase. For students living on a limited budget it is a boon for making monthly payments on all their purchases. Hence a student card can readily fill the vacuum that is created while you can purchase anything under the sun and whenever you need; additionally you will have the benefit of building up an excellent score. There are many students who are eligible to get an amount of $10,000 line of credit along with their first credit card. Timely payments would only mean that no matter how little the line of credit that is given to you; its history will tell how honest you are as a student borrower.
Assuming that you am interested to open a credit card account, there are few things that you should look into before opening an account? Here is a list of things that you should look into before opening an account. The most important thing that one should look for is the percentage rate – also known as the APR. This figure is the one that gives you the idea of credit, taking into account various interest rates and other charges, such as any annual fee and the charge for borrowing cash. If there is no annual fee then the APR is the monthly fee that is compounded over twelve months. Ideally you should choose the one with the lowest charge. Also additionally you should also look into other kind of fees as well. These are or should be explained in the summary box in which the credit card issuers lists all their fees in a very easy format. Some of the fees that one should look out for are application fee, annual or service charge, ATM withdrawal fees, balance transfer fees, cheque advance fees, overseas transactions and other card replacement fees.
Though you are going to open your first student credit card account do keep in mind that the credit card companies exist to make profits. Hence if you don’t or fail to pay your balance in full then it is likely for you to get a whole list of fines and dues from the bank. There are also chances that if you do carry over on your monthly payments, then balances at promotional rates will be cleared before standard rates. This would mean that you will accumulate a higher rate of interest. So you always need to be sure that you read the terms and conditions of your student credit card carefully before opting for one. You should also watch out for all hidden costs associated with being a cardholder if you do not want to leave a bad taste in your life regarding banking.
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Student bank accounts overdraft
Student bank accounts overdraft is the most vital thing that a student needs to take care of. If this is not your prime concern, then dear friend there will be high chances that you end up building debts after your postgraduate course. Finding an entry to one of the best colleges to pursue higher education is a tough work. But finding the right bank that could help you manage your funds well is tougher than that.
After the recent economic downturn, the banking sector suffered huge losses. This has led the banks to increase their interest rates, lower down the extreme privileges in order to cut down costs. The big names in the industry reported either loss in their financial quarter, or a drop in their profit earnings. This is the present scenario with the banks in almost all countries. Although people are suggesting that the conditions are changing on the positive node, still it is advisable to know all the details related to a bank before opening any account with them.
If you are currently going for higher education and are thinking of opening a student bank account, then you must consider the overdraft facility with utmost priority. Your future depends on the decision that you take at present. If you are lured by the exciting offers of latest iPods or mp4 players, then you are in grave danger. Don’t get carried away by such offers, as they are meant to appease the young clients. These can also be covers to hide the high interest rates, which the banks intend to charge you in the long run. Banks try to attract the students more, because students are new to the banking world. Also they can be easily turned into their long term clients. Switching is generally not preferred by the budding investors. Hence, most importantly check the overdraft facility of the bank, before opening a student account.
Generally, the banks provide interest free overdraft facility to its student account holders. However this privilege is limited to a certain amount only. It however varies from bank to bank. The general range is anywhere between the range of 2000 pounds to 3000 pounds. Try to research on the maximum limits provided by the banks. After all, if you manage to get a better Student bank accounts overdraft facility, then you will be able to save yourself from ending up in high debts. This is a fact in current scenario. Many postgraduate students forget the importance of the overdraft and when they receive low amount on high interest, they end up in taking more money.
Another important factor that you need to keep in mind is that you need to repay your debt after you pass out your college. The more you withdraw, the more you are raising your own burden. This realization will also help you in assessing your requirement. You must withdraw only that amount, that you will actually require, and not the one permitted to you. In this way, you can tread the path of saving funds. Otherwise, as soon as you start your professional life, you will be paying your college debts for a few years. Many banks allow you an interest free overdraft of 500 bucks, as soon as you open an account with them. Then this limit is raised, as per your need. The interest charged by different banks after the allowed limit varies and is generally around 7 to 7.5%.
You need to be alert while selecting the correct bank for your student account. You need to check the minute details about the plan you are opting to assure that there are no hidden clause. If required, you can ask for the assistance of professionals, who are specially appointed by the banks to help the students in making their decision. You should also try to have this account in the branch nearest to your convenient area, so that you need not spend much time for the petty banking issues. Leading banks like NatWest bank, the Royal bank of Scotland are gaining popularity because of their 0% interest overdraft schemes and cordial services. They don’t cheat their young customers and in a way build their relationship for a longer term. At the end of the day, if you take the right decision, only you will be benefitted. This will help you in keeping financial troubles away from yourself.
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