|
|
|
|
|
|
||
The following is the transcript of the video below which you can read to understand the content and answer the questions correctly. Best Student Credit Cards - Welcome to another how credit cards work instructional video. Best student Credit Cards. In today's world, credit is everything. Without a solid credit history you can't qualify for mortgage, a car loan or a credit card. That's why it's so important to start building a credit history early. The sooner you start the better. And perhaps the best way for young people to start building credit is with the student credit card. A student credit card is a special type of credit card designed specifically for young people who in school and have little or no credit. They are fairly easy for young people to obtain although some may require a cosigner. A cosigner is a person usually parent or guardian who agrees to assume the debt in the event the card holder is unable to pay. Most credit card limits for student credit cards are usually set around five hundred dollars. This is because credit card companies view students as higher risk since they usually have lower salaries.
For the same reason interest rates are often a few points higher than standard credit cards. Of course student credit cards offer more benefits than just establishing a credit history. They can help develop money managing skills and financial responsibility. You will need to learn how to set a monthly budget so that you can pay your bills on time. Considering how many adults these days carry huge credit card debt, these are important things to learn. The temptation will always be there to use your student credit cards for all sorts of things. But you'll soon learn that it's not wise to just charge every new pair of shoes or concert tickets whenever you feel like it. You have to prioritize your spending or you'll quickly find yourself in over your head and if you do miss a payment or go over your limit, you will soon learn your mistakes of consequences. For it is better to learn those lessons while you are young and only dealing with relatively small sums of money. Thanks for watching to learn more detail information about credit cards look for other how credit cards work instructional videos.