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Life today to a large extent revolves around plastic money. Credit or debit cards are used to buy tickets, pay for holidays or purchases, and even pay college fees. Children are given a credit or debit card the minute they turn 18 and, more often than not they tend to keep the same card for many long years.
On logging onto sites like Creditcards.com or other online sites offering credit
cards one will find an amazing variety of credit card and debit card options even
for students. By browsing the World Wide Web one can get a clear idea of the many
options and the advantages as well as disadvantages. By comparing the various
offers it is possible to determine which card is most suited to a student’s needs.
• A student credit card is issued by Visa, Master Card, Discover, or American
Express Card. These credit card giants and their associates generally fix a credit
limit of around USD 500-1000 to begin with. While some grant a card without a
guarantor others request the parent or guardian to cosign and agree to take on
complete responsibility for the card.
• A debit card is issued by Visa or Master Card and is prepaid. Such a card does not
need a consignee and a debit card requires no credit history to be eligible. Further
more, used up money can be replenished online, through an ATM, and via a phone. In the
case of debit cards the bank or financial institution is not offering a credit line it
is just issuing a card for the amount held in security by them.
Essentially, a debit card is a card that accesses your own money. It adjusts
expenditure against money in your savings account or against the amount pre paid. In
this case instead of paying cash you are swiping a card and paying out of money already
held by you. On the other hand in the case of a credit card it is a buy now pay
later business. It is a kind of borrowing where you promise to pay the credit card
company in full or part when the money arrives. Interest on the amount spent is payable
only if you do not settle the bill in full.
The advantage of plastic money, debit or credit card is:
• You do not have to carry hard cash around and can use the credit or debit card to pay
for expenses.
• Cards are accepted internationally while personal checks are not.
• Banks charge for use of checks but not for use of debit/credit cards.
Debit or credit cards are universally accepted and one can even purchase plane or train
tickets or pay for unforeseen medical or hospitalization expenses using them. They are
extremely useful as a stand by and can be used to establish a good credit report and
score. A student credit or debit card trains kids in the effective handling of finance
and puts them on the path to becoming responsible adults.
About the Author : Aaron Brooks is a freelance writer for
Free Credit Card, the premier website to
find information on Credit Card including topics on credit card market, credit cards,
business card credit comparison, card credit processing, credit card reviews, credit
card offers, card credit deals and more.
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