Posts tagged: visa_credit_cards

Student Loans And Credit Cards

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A lot of students ask where should they get their funds to support them through school. Student loans and credit cards are two common areas where students look to go with expenditures. I think that both serve their purpose, but you want to make sure that you use them for the right reasons. These are really two different weapons in your arsenal that can go in your favor or against you. It really depends on how smart you are with your spending habits.

Realize first what they are and what purpose they serve. There are so many different types of student loans you can get out there and so many types of credit cards you can get out there too. A student loan is directly related to helping a student with the cost of tuition, possibly school materials, and room and board. It just depends a lot on what type of loan you receive.

A lot of it will also be based on what is the tuition requirement for your school, which can very from a $2,000 to $30,000 a semester. It is important to make sure you know too what rent will cost in your area along with other normal expenditures. Obviously going to New York or California is going to require more money for living standards than going to a school in Utah or Minnesota.

A credit card will also have a lot of different rates and usually have higher interest rates. Now you can find o% APR for a year or six months and it can buy you some time to use these cards. You have to be careful about changing rates. The beauty of a student loan is that you don’t have to start paying until several months after you are finished with school.

A credit card is going to require minimum payments, interest, potentially annual fees and other requirements. A credit card, such as college student Visa credit cards, can also help to build your credit faster than a student loan if you can use it correctly. Also these tend to be less tedious to get as far as requirements, there are many visa credit cards for college students with instant applications and easy approval.

Student Loans Vs. Credit Cards

This answer is decided by looking at what you are going to use it for. Chances are you are going to have a high tuition to cover and it would probably be a lot better to use a student loan to take care of that. If you can get room and board in that then that would be beneficial. You are going to have lower interest rates compared to a credit card and more time to make money before you have to worry about paying it back. This can help you focus on school more and the tasks at hand. You will have plenty of time to make money and start chipping away at that loan.

As far as a credit card goes, I think that these are also necessary. They are great to help you build your credit for the purchases you may make when you begin your career. These are great for everyday purchases like food and clothes. You just have to be aware of what your balance is and how you plan on paying it off.