subject: Pros And Cons Of Student Credit Cards [print this page] Pros And Cons Of Student Credit Cards Pros And Cons Of Student Credit Cards
Students usually find it difficult to acquire the regular credit cards since more often than not they are required to be cosigned by guardians. No doubt, this step is convenient for the guardians but at the same time it creates hurdles for the students. However, with prepaid student credit cards life has become relatively easier for students, who need to have a little cash to spend.
These student credit cards are collecting famebecause they do not require students to get them cosigned by the parents. This helps them taste the feeling of independence. However, prepaid credit cards are used in a different manner than the regular credit cards hence you have to make sure that you understand about the cards, before you decide to use them.
The student cards are such credit cards where you have to put in your own specific amount of money, and later will be spending only what you have put in. Canadian student credit cards are unlike Canadian regular credit cards as these prepaid credit cards are not meant for using cash on loan rather it allows you to spend as much as you have put money on it. For example, you have put $300 on your prepaid credit card, now this means that the card is only $300 worth so you have got to use only this amount. So, this means that you only get to use the money that you earlier on preserved on your prepaid credit card and cannot use it like the usual credit cards. Once you have used the entire amount you initially deposited on it; you need to refill your card in order to use it again.
There are several benefits of suchstudent credit cards. The predominant one is that you are saved of debts owing to these prepaid student credit cards. In addition, you can deposit as less an amount of money as $75 on these credit cards. This has made really easy for the students who usually possess less amount of money to put on the credit cards.
Moreover, another advantage of these types of credit cards is that they aid the students in establishing good credit history. So, all those Canadian students who are serious about acquiring good credit scoring, you had better go for a prepaid credit card. You can easily get such credit cards without having to brood over your previous credit scoring or low finances. However, with the usage of these types of cards your good credit score will surely be reported to Equifax Canada and TransUnion.
Apart from this, these credit cards are a great way to master the art of money handling. As you will be depositing money on these cards, so you will learn to be careful about its usage as well. Moreover, the usage of these prepaid credit cards will make you responsible regarding money matters. These credit cards are no wonder, best for taking care of your routine financial issues plus unlike cash, carrying these cards is extremely convenient. But, you have to be 18 years old and should be a Canadian citizen in order to avail the services of such credit cards in Canada.
