Credit cards have been around for a while and still cause a lot of controversies. While some find them a real saving grace, others believe that they are pure evil that causes you to go into debt. But who’s right?
Answering this question often becomes a real challenge for young people. When you arrive at college, you might not have any experience with banks yet. So, it’s natural to doubt whether you need to get a credit card or not.
Being a cardholder is definitely a huge responsibility. It can cause some issues for you if you use it wrong. However, it can also give you plenty of benefits. For example, let you pay writers for write my paper in 3 hours to get your college tasks done, shop online, and more.
In this article, we will debunk the most popular credit card myths and tell you why you need a credit card in college!
Source: Top 3 Credit Card Myths We Must Debunk
Young People Can’t Have Credit Cards
Most of us have zero credit history when arriving at college. Moreover, most students don’t yet have a steady income and might still be supported by their parents. These facts caused one of the most popular myths out there - you can’t apply for a card in your 20s or some.
True: There are plenty of offerings designed specifically for students with no income or history. Most often, such cards have no annual fees. Also, they often offer lots of nice incentives, such as extra cash back or extra credit for a high GPA like those offered by Discover.
Getting a Card Will Harm Your Score
Many young people are afraid of starting to deal with banks because there is a common myth about how having a card inevitably damages your score. While this could be partially true, it’s still more of a myth.
True: Your score can be harmed by a credit card. However, only if you open tons of credit lines and stack up debt on each of them. If you open just one line and use it responsibly, there will be no harm to your score.
Credit Cards Only Lead to Debt
Finally, the biggest myth out there is that having a credit card will inevitably cause you to get into a huge debt. This is one of those rumors that make young people stay away from them. However, it’s also not quite true.
True: Irresponsible use of a credit card will only lead to debt. However, if you are a responsible user, you are on the safe side. Moreover, responsible use of a card can actually bring you more benefits, which is what we are going to discuss next.
Why Does Every Student Actually Need a Credit Card?
If you are in college and still hesitating about whether you should get a credit card or not, the short answer is yes, you should. These days, having a credit card can give you plenty of benefits. Let’s look at the key reasons why every student needs one in college.
Learning Financial Literacy
Studies reveal that a whopping 61% of young adults never received financial education at school or at home. Needless to say, such negligence on this issue leads to a variety of finance-related issues in your adulthood. But having a credit card can help you avoid them.
As a cardholder, you will learn how to track your expenses, spend responsibly, not exceed your limit, make on-time payments to avoid fees, etc. Eventually, it will teach you to be more financially literate, which will definitely help you a lot in the future.
Receiving Nice Rewards
We all know that students live on tight budgets. That’s why an opportunity to save a bit of money here or there will never hurt, and a credit card can give you such an opportunity.
There are plenty of nice reward programs for cardholders that will help you save money on all sorts of expenses. For example, some of the most common rewards are:
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One-time signing rewards for new cardholders;
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Cashback for spending;
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Reward points for every dollar spent;
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Reward miles.
All these bonuses sure feel nice. Typically, they can be traded for money or some products or services. For example, your miles can buy you a ticket for your next getaway, and reward points can be redeemed as a deposit. One way or another, such rewards will make you a bit extra cash, which is always great.
Source: https://www.freepik.com/free-photo/person-paying-with-its-credit-card_20083173.htm
Understanding and Improving Your Spending Habits
Keeping track of your spending can be rather boring and tedious if you do it on your own. That’s why most young people just don’t bother about it. And this is a huge mistake. Being negligent about your spending habits can make you overspend, get into debt, and get broke, which is something you really don’t want in your life.
A credit card is a good solution if you want to start tracking your spending habits. Today, pretty much every bank has a convenient app that will let you see how much you spend on different categories of products and services. It’s an excellent opportunity for recordkeeping. And with some critical analysis, it can help you not only understand your spending habits better but also improve them.
Making Secure and Convenient Payments
These days, when online shopping is a real deal, a credit card is an absolute must-have. With its help, you can make quick and easy payments for all kinds of products and services. Whether you need to pay for a paper at the best paper writing service or top up your cell phone - there is no easier way to do this than with a card. Besides, it’s a great way to deal with emergencies when you have no money at the moment.
The Bottom Line
As you now know, owning a credit card can be a saving grace for students. You must use it responsibly in order to avoid debt or low scores. But if you do this, you can make a lot out of it and make your card a good friend to you.
