More and more banks are offering special credit cards for students, which enable payment abroad, online shopping for cashless payments. However, students should not access it blindly. A comparison of the offers is advisable in any case.
So that the desire for financial freedom does not become a cost trap and costs high monthly fees, it is worth comparing prepaid credit cards and cheap classic offers.
Advantages and benefits of credit cards for students
When ordering online, it is not uncommon for credit card payment to be requested. However, you should note that a long-term disposal over your financial scope does not create any advantages and can pave the way directly into the debt trap. For this reason, many credit cards for students present themselves directly with a connected account and available on a credit basis, or with a limited limit on monthly withdrawals at the machine and also limited bookings for payments on the web.
Students who spend a semester abroad or want to do an internship within the Good lender or globally should under no circumstances dispense with a credit card and, because of the unrestricted acceptance, rely on a classic model with a limited but easily increasing limit.
The prepaid model for students
Prepaid credit cards are issued to prospective students or applicants during their studies without having to check their creditworthiness. The best are models to which a current account or call money is connected and with which interest arouses the desire to save. With regard to credit card acceptance abroad, it is advisable to rely on a well-known and globally operating bank. Online banks are not excluded, which means you can make real savings and concentrate on free or very cheap credit cards.
Regardless of whether it is traditionally a special student credit card or a prepaid segment, it is important that it is a Visa or Mastercard and therefore has the highest possible acceptance. If you choose a classic credit card, you set the realistically realistic limit and make sure that you cannot spend more money than you can earn per month.
Credit card conditions for students
Nobody wants to spend money unnecessarily and invest a lot of money for the card or the account management, for cash withdrawals at the machine or the payment with the credit card. Models are therefore practical for which you do not have to pay an annual fee and which you can use free of charge at many acceptance points.
In the contractual conditions, you should inform yourself whether you can achieve a temporary and short-term increase in the limit with a classic credit card and apply for it by telephone or online. Uncomplicated processing is important if you need the limit increase, for example in the event of a spontaneous liquidity problem abroad, and cannot take any waiting time.
Important special features of credit cards during your studies
Your budget is limited, so you have no way of paying large amounts of debt without problems and subsequent financial difficulties. This makes it all the more important to give advice on the limits and a possible temporary increase in the amount available.
Since you need an account for your transfers and incoming money in addition to the credit card, many banks combine the two options and offer a free current account for students, including EC and credit cards. The account management should be free of charge for your monthly transfers and have no limits in the amount of possible incoming payments.
For example, an account with a credit card is of no use if you have to prove a minimum monthly payment or have to pay high fees for your account. Models with individual extras for students are very often chosen because the extras are expressed, for example, in a bonus or interest on the credit and offer some advantages and more scope for the credit card holder.