Many post-secondary students get their first credit card to help them pay for their education expenses. Credit cards can be extremely helpful for students, who are looking to build their credit history before entering the working world. While most students don’t use credit or only use it to pay for their tuition, or living expenses- there are countless other ways students can use credit to their advantage.
As mentioned in Credit Tip Tuesday #11, using credit for everyday purchases can help raise your credit score. Students are at an advantage, because many are starting their credit journey from scratch and often have less expense. This is the perfect opportunity to start making small, regular purchases and paying your balance off as soon as it is due. The more you do this, the higher your credit score will be! Starting your relationship with credit early, is the perfect way to learn about it. Being a ‘master’ of your own finances isn’t something you learn overnight, but starting early is the best way to make a difference in your life!
Let's talk about how students can master their credit
When entering the working world for the first time, many new grads begin saving for cars, homes or condos. However, many struggle to make down payments or get approved for loans. While starting your credit journey young doesn't guarantee you’ll get your dream home the moment you graduate, it will help to show your future creditor you are a reliable borrower.
Developing positive credit habits early also helps you build a positive relationship with your finances. This means you’ll learn how to spend, save and borrow money in a way that allows you to feel in control of your money. Building a positive relationship with money is the best way to ensure smart financial habits.
Exclusive Access to Rewards
Many credit card companies offer rewards for their members. Every dollar you spend equates to a specific amount of points that can be exchanged for rewards. Plastk’s point system offers our customers perks like cash-back, electronics, deals with restaurants and much more! Did you know that we are the only secured credit card company in Canada that offers premium rewards for our members?
This is a great way to encourage positive spending habits. You can exchange your points for everyday items or save up and treat yourself to luxury items! Using your rewards can also help students feel a greater sense of accomplishment for paying their bills and have more incentive to use their credit card over debit.
While credit cards can be amazing tools for individuals of any age, the earlier you start your credit journey the better. Whether you are eighteen or eighty, there are countless advantages to using your credit card wisely.
Wondering what makes Plastk unique? Come back next week for CCT #13, where we will compare Plastk to other credit cards.
Disclaimer: The content provided on the Plastk Financial Inc. Blog is information to help Canadians become financially literate and learn about credit. Plastk is not responsible for building or ruining an individual's credit score or credit rating. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment, credit inquiries, and all other decisions should be made, as appropriate, only with guidance from a qualified professional.