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Understanding the workings of student credit card

Who said students do not need credit cards? When students opt for online courses and see a pop-up advertisements like student credit cards instant approval it ponders the students over a lot of questions like is this similar to credit cards and debit cards. There are pre-approved credit cards for students, and while studying online, you feel like taking a break and clicking on the link to read more.

Students can get instant approval without face to face communication with the credit card experts or financial expert. Student credit cards with instant approval are defined as the credit card that can be applied via online and you can understand if you stand qualified for the student credit card with instant approval or not. Some financial institutions conduct a credit check. If the student is qualified in a conditional approval mode, this means the financial company is still conducting a complete check which can be ongoing till you are qualified. Students are officially eligible for student credit cards with instant approval, but sometimes for the first time applicant students might require a co-signed credit cards or a prepaid one. The issue with such a student debit card is that prepaid debit cards cannot give you a solid proof of good credit score as part of a background check. Some students already have a good credit history, hence can be qualified for student credit cards with instant approval. Some students misuse such pre-approved student credit cards, and the credit score becomes a huge determining factor throughout their life be it leasing a house, car loan or personal loans, etc. If the student defaults on the repayment, this can have a reverse impact on credit score just the same way it goes in the relative grading of examination marking systems. Students having personal accounts can be qualified for a student credit card with instant approval. Always check your balance and every year it’s good to keep a close look at the credit score as well. You can assign automatic alerts via email or mobile on the repayment of your debts. In case the decision of applying for a student credit card with instant approval was on the spot, it is better to avoid using the credit card.

Some students fail to realize the financial industry and get fooled by normal financial stores, and those who are using the student credit-card for the first time can be deceived by a brutal scam. Unless student consults their parents or conducts a complete research on how this works and who are the major competitors and companies or agencies that are into the credit card business and the monthly or annual fee assigned to it as well as the offers given by that card. The major part of checking goes with the security of the website as well. Be careful because in United States the crime rate on Phishing of websites comes up to 38%, hence verify the website and ensure the lock sign which is the security badge on the address bar. Another point to be noted is when the student fills in the personal information for applying the student credit card they use data encapsulation method to keep the information safe as the respective financial companies are responsible for the safety of customers. Some companies on comparison and review can give you the answer to a lower interest rate and other particular rewards as a student. Some of the best student credit card instant approved loans are:

Discover Financials Discover it
Capital One Journey Student Rewards
Wells Fargo Cash Back College Card
Bank Americard Credit card
Citi Thankyou Preferred Card for college students

If the bank you associate with for applying a student loan has selected small financial stores, you can go to their local branch and speak to the financial expert to discuss which plan is best for you. If that is cumbersome, you can speak to the customer care executive and understand the offerings and services. You can send an email or check for online websites as well. The statistical data reveals that around 1427 students who have student credit cards did not have enough information on how it works and what it could do the students in future if the repayments are faulty. 42% of the surveyed students did not know credit card usage and management nor were they taught by their guardians or parents on the same. Educating the student on the usage of a credit card is very critical. If it stays a burden and not a financial aid, it can easily harm the student’s credit history. The benefits and offerings on the credit card which comes with every single advantage like loyalty programs, reward points and accounting system to track all the history.

Tags: student credit cards instant approval

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