Credit cards are good for students and immigrants

In this article we go over the main 7 reasons why credit cards are good for students and immigrants.

Credit cards are good… Very good for students and immigrants Seriously. I think just about everyone should have at least one credit card to help build credit, use for emergencies, fraud protection, and a host of other benefits. But I know that not everyone agrees with me, and many people think that credit cards are bad. They may have their reasons, but I do not fully agree with those views.

When you’re dealing with credit cards, there are several different things that you should know. It’s important that you understand all of the advantages and disadvantages that you should be aware of when you’re handling your finances. Your finances are one of the most important areas of your life, and it’s important that you’re getting the most out of it.

This post is going to explore the advantages of credit cards and some of the different ways that you can use them in order to help your finances. Hopefully, this post will answer any questions that you have and give you some insight into the world of credit cards. I know that everybody is different, which means that not everyone is going to need a credit card, but I’m speaking for the majority of people.

Credit cards are good for students and immigrants as they are helpful to build your credit score

This in my eyes is the most important benefit of owning a credit card!

When you are a student, it is hard to build a credit score. However, it is crucial to have a good score in order to be prepared for when you will need to get a mortgage or other big loans. Banks look at your credit score and based on how good it is, you have access to better interest rates and other perks.

The Golden Rule is to always pay the balance in FULL at the end of each payment cycle. It is important to wait at the end of the cycle when you receive your invoice, because that shows banks that you can pay monthly all that you owe.

Emergency source of funds

It can also be used as an EMERGENCY source of funds. I am talking here about real emergencies. For example, a close relative suddenly dies and , of course, they live in another country. So now you have to take a few days of unpaid leave, buy airplane tickets and rent a room in a hotel. If you do not have any more money in your emergency fund, it is a good idea to take that on your credit card. 

You have to always remember the Golden Rule…always pay in full at the end of the month.

Fraud / Theft protection

If your card is stolen, you are protected by the bank of all purchases that are not made by you. You just have to announce the bank as soon as you realize what has happened. If you wait too long, the bank may refuse to reimburse the fraudulent purchases.

This is another good example of why you must wait for the end of month invoice before paying off a credit card. Some banks may consider that you have accepted a purchase since you just paid off your due balance.

Dispute charges

Have you ever bought an item that broke down within the first month of use and the seller doesn’t want to reimburse you? Well with a credit card, you can call your bank and dispute the charge with them. More often than not, they will help you out, reimburse the item and charge back the seller.

Rewards

Almost all credit cards will offer some sort of rewards program. There are some that will offer  a few cents off gas and others that will give back a certain percentage of grocery charges. Especially for a student, I think this is extremely important as you are trying to save every bit you can, anywhere you can.

Vacation and car rental insurance

These days most credit cards offer some kind of vacation insurance and car rental insurance. Of course, the credit cards that have annual charges usually have much better insurance policies and for how much it costs, it is well worth the price if you travel a lot. 

Speaking of car rentals

Most car rental places will not allow you to rent a car if you do not own a credit card. This may apply less to students, but if you are a person that travels a lot it is another reason to own a credit card.

The Golden Rule : Credit Cards Should be Paid in Full Each Month

I have mentioned this a few times already, but to get the most out of the benefits listed above, the credit card holder needs to pay the entire balance in full every month. When used properly, credit cards can be a very useful addition to someone’s life. When they are not used properly, credit cards can be BAD! Always do your research, and please be financially responsible.

It may be hard when you start your life after school. Even when you start a new life as an immigrant to build credit. Credit cards are goof for students and immigrants.