Student credit cards can be a good option for people looking to cover their basic bills, but you may be surprised to learn there’s no limit on how much you can charge for them.
News.au spoke to students at a university about the pros and cons of credit cards.
You don’t have to pay back your debt on time.
Student credit card interest rates vary based on the amount you’ve borrowed, and they’re often lower than what you’d pay on a normal credit card.
You’ll need to keep track of your expenses.
You have to keep a list of the things you spend on and what you receive from your university, and this can be tricky.
Credit card interest charges can also fluctuate based on when you use the card, the interest rate and other factors.
You can also need to report any unused balance on your credit card statement.
You could be charged a fee for that too.
There’s no guarantee you’ll get the best interest rates.
The interest rates offered by credit cards aren’t guaranteed to match the interest rates you might be offered from other sources.
Some banks offer a higher interest rate on some of their cards, while others offer a lower interest rate.
They also can offer lower interest rates if you pay a lower amount on the card than the advertised rate.
Credit cards offer lower rate guarantees because they’re usually tied to your credit score.
So you’ll pay less if you have a lower credit score and use a credit card that offers lower interest.
You should also be aware that the interest you’ll be charged is the rate you’ll have to repay the card on, not the rate they’re charging.
If you’re looking to pay off a high-interest credit card but don’t want to incur a high interest rate, there are a few other options you can consider.
1) Use a low-interest card.
These cards are typically more expensive than the higher interest rates available on credit cards that offer higher interest.
There are a lot of great credit cards for student use that offer lower card interest.
Find out more about low-cost student credit cards on this article.
2) Avoid interest-only cards.
There might be a limited number of interest-based credit cards out there for student purposes, and it’s best to steer clear of interest based cards.
Interest-only credit cards offer the highest interest rates, so they might not be as attractive as the interest-paying credit cards available for regular users.
3) Check your account balance.
Many credit card providers require you to keep your balance up-to-date on your student account, which can be an annoying chore for students.
You also need your student credit card number to verify your payment history.
It’s best if you only make payments from the card you pay for.
You may be charged extra fees for making transfers or overdrafts to the card from another source.
This could affect the interest earned on the balance, or it could just mean the balance is higher than you’d be comfortable paying.