Descubra las ventajas de tener una tarjeta de crédito durante la universidad

15 de julio de 2024

by Christian Phillips

Responsible credit card management can provide students with various financial benefits. Let's explore and take advantage of these perks!

Here's how college students can benefit from having a credit card account while in college:

Helps Build Credit:
Every time you make a payment on time or in full, the cardholder will see that payment reported on their credit report. What is a credit report? A credit report is a detailed statement that outlines an individual's credit history and includes several categories of information. These categories include personal information, credit accounts, public records, and inquiries. Consequently, credit reports assist in calculating consumer credit scores, which are also factored into the decision-making process. After analyzing the report summary, lenders can determine whether to approve the applicant.

By staying current on your payments and maintaining a clean credit report, you're not just building a positive credit score. You're also gaining a sense of control and responsibility over your financial future. This empowerment will serve you well when you apply for credit and loans in the future.

Provides Security in situations of Emergency:
It's crucial to remember that a credit card is a tool, not a source of free money. Only use it in necessary situations. Managing unexpected emergencies, such as a sudden car breakdown or running out of essential items, can be challenging. But with responsible usage, a credit card can provide the security you need in these situations.

Teaches you how to manage money:
Since you are responsible for your credit card, having an account gives you a taste of how to manage your finances. You understand how APR works when you're carrying a credit balance. You learn how to budget to meet monthly payment obligations. Last, you can build your strategy to take advantage of credit card rewards, depending on the type you opt for.

Rewards Programs:
One advantage of credit cards over debit cards is their rewards programs. These programs provide bonuses for spending on gas, groceries, and travel. Cash-back rewards can be particularly beneficial for college students. Don't miss out on these opportunities.

[Credit Options]

Apply for a Credit Card:
There are different types of credit cards, and qualifications vary depending on the applicant’s situation. Approval for lines of credit may be challenging for specific individuals, especially those with limited or no credit history. Frandsen Bank & Trust offers a wide variety of credit cards.

Authorized User:
An authorized user is an individual who has permission to access a primary account holder’s credit card account. Authorized users are not responsible for accrued credit balances. However, if the primary account holder is delinquent in repayment, it may affect the authorized user’s credit report. Becoming an authorized user can be a low-risk way of building some credit history, only if the primary is financially responsible.

Secured Credit Card:
Applicants must submit a refundable security deposit when applying for a secured credit card. Select a card that offers no annual fees and reports to all three credit bureaus (Equifax, TransUnion, and Experian). *Individuals under 21 may need a cosigner unless reliable proof of income can be provided to the issuer.

Check out the fantastic selection of credit cards offered by Frandsen Bank & Trust! Our top-notch credit cards come with diverse rewards, fantastic pricing, and cutting-edge EMV chip technology. Contact your friendly Frandsen banker today to discover the perfect credit options for your financial needs.

Descubra las ventajas de tener una tarjeta de crédito durante la universidad

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