Credit is essential to major things in life
Many of us are told from an early age that credit cards are the root of all evil. You may have heard things like “you will just create more debt for yourself, you’ll ruin your credit, etc..” but there is really no need to fear. Credit cards are not something we should see as something scary and evil, but as a tool students can use to build important financial responsibility habits. To understand credit cards, you must understand credit. Your credit is the ability to borrow money or access goods and services with the understanding that you’ll pay later. Your credit can help you make big purchases like houses and cars later on in life, and can also tell banks that you’re trustworthy and allow you to take out loans. The key thing in establishing credit is to start early, so many students should take advantage of different cards offered to them.
Companies like Chase, Discover and Visa offer “student” credit cards which are designed for students to start building their credit. Some of these cards even offer things like cash back, reward systems, and other perks and benefits for using the card.
The application process is also easy, and most companies only require a little information to see if you’re approved to have one of their cards. However, you should only apply and use credit cards once you think you are ready for the responsibility; it can be easy to splurge but it’s essential to note that owning and using a credit card can have a heavy impact on your future. So, if you think you’re ready to start building your credit up, take a big step into fiscal responsibility and find the credit card that’s right for you.