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Five Reasons Students Might Consider Using Credit

Five Reasons Students Might Consider Using Credit

    In North America, students can apply for credit when they attend a post-secondary institution, even without verifiable income. The credit available to them ranges from low limit credit cards to education loans that can reach into the tens of thousands.

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    A person can use this to their advantage, credit decisions made as a student can make a considerable contribution towards the amount of capital and assets they can obtain after graduation.

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    1. You can leverage the benefits of a credit card without succumbing to high interest rates.The high interest rates charged by credit card companies are a result of a multitude of factors, but the greatest factor is the high default rate on these types of products.Be smart when using credit cards, use the interest free grace period after a purchase to enhance cash flow. An individual may not have the funds now, but as long as the balance is paid in full no interest will be charged.In addition, many cards carry a set of free insurances that may include a 90-day replacement warranty for retail items that are stolen, lost or damaged and an additional year of manufactures warranty on certain electronics and appliances.

      Please note that anything considered a cash advance on a credit card will incur interest from the day the transaction occurred. Also, people need to read the credit card disclosure for their particular card before making any purchases.

    2. See a credit card as an opportunity to build a relationship with a financial institutionApplying for a lending product is a chance to discuss future needs and see what other valuable services the company offers.Companies want your business, so remember to ask if they have any special banking offers or discounts for purchasing multiple products.Furthermore, your loyalty to a company can lead to better lending and interest rates when buying a house or planning for retirement.
    3. A long credit history can make you a more appealing credit customer

      Credit worthiness includes many variables, including repayment habits; the number of open credit facilities a person currently has, debt to income ratio and credit history.Even if a person never carries a balance from one month to the next, regular use of a credit card will contribute towards a positive credit score. In particular, lenders like to see credit cards that have been active over an extended period of time and show no late payments.Sadly, as a person gets older the lack of a credit history makes lenders see them as a risk and therefore applying for credit becomes harder once a person is no longer a student.Remember, a secondary user on a credit card gets no credit history benefit because the application is under the primary cardholder’s name.
    4. Using credit facilities can prepare you for a more secure financial future after graduation.At some point, people will consider home and vehicle ownership. A decent credit history will offer more options when it comes to low interest rates and how much debt a credit company will allow someone to carry.Besides financial concerns, having an excellent credit history can affect a person’s ability to get a job or rent an apartment. Employers and landlords are now using credit checks to filter out candidates and unsavory tenants.As the job’s and renter’s market becomes more competitive a great credit rating might give a person a competitive advantage.
    5. The use of credit products develops a sense of independence and responsibilityOptimally, it is wise to have one of three things before applying for a credit card. These include some savings, a job, or parents willing to cover debt expenses.Although, making minimum payments might be convenient, it makes paying off the card almost impossible. Minimum payments in the long run do not make economic sense, but it will keep a credit score clean.Over time, students need to transition financial responsibilities over from their parents. Paying for a credit card might be someone’s first reoccurring bill. It is an opportunity to develop good repayment habits and budgeting skills.

    Although, using credit is not for everyone, applying for credit as a student can be an important milestone. Used wisely, even a student credit card can alleviate many future hurdles involved in asset acquisition and give a person a sense of responsibility before taking full control of their lives.

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    Last Updated on June 1, 2020

    10 Reasons Why Following Your Passion Is More Important Than Money

    10 Reasons Why Following Your Passion Is More Important Than Money

    Elite Daily have got some great points as to why you should chase down your dream job, regardless of how much the wage is. If you’re feeling unfulfilled in your career, maybe it’s because you’re on a path that doesn’t connect with your passion? Maybe it’s time to steer right off that road and take a different route:

    Money is a very powerful thing, it builds empires and breaks down kingdoms, it allows for dreams to come true and it takes others away, it makes some people happy and others completely miserable. Today the pursuit of money is almost directly linked to the pursuit of happiness, many will argue that money = happiness.

    However, this is inherently problematic as this mindset leads many people to stray down a path that doesn’t best suit them. When people choose their careers, they are sometimes blinded by money and so choose to follow the paper trail. Although money is great and can buy us all the things that will temporarily make us happy, no amount of money can buy time. Time is our most valuable asset and it is something, that while on this earth, we should spend most wisely. You shouldn’t feel like you’re mindlessly wasting your life away

    This generation is particularly in trouble because jobs are scarce and many of us will be stuck doing jobs we hate just because we need money. Although this may be the right move for our careers now, this shouldn’t be something we do for the rest of our lives. it is best we search for something we are passionate about. Here are the 10 reasons why you should follow your passion and not the money.

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    1. Working for money may seem like good enough motivation for one to keep at their career.

    Every morning Monday through Friday you go to work 9 to 5 sitting their punching away the hours stressing about the work at hand. This is not a way to enjoy your life. Working for 8 hours a day 5 times a week at something that makes you miserable is not the way you live life to the fullest.

    Many people who choose careers that don’t make them happy will tell you that they would all do it differently if they had the chance. You only have one life, so don’t waste it working somewhere you hate just because of the money.

    2. You’re more passionate about the work you are doing.

    There is nothing worse than having to wake up every morning during the week to mindlessly go do work you don’t even care about. However, this is never really an issue when you are passionate about the work you do. If you are not forced to work somewhere because of monetary constraint, you truly enjoy what you do and you never really work a day in your life.

    3. You can relate more to the work and come up with better ideas.

    Being forced to do work is one of the most draining experiences. While there are times at every job where you may feel the work may be draining and dull, you have to realize that not every day is going to be an enjoyable one. There are highs and lows, but when you are passionate about the work you you look past the dull days. Your creative process is also different. You are more inclined to come up with creative ideas when you like what you do.

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    4. Work doesn’t feel like it’s forced upon you.

    When you value money over your overall health and your passion, you will find yourself in an endless cycle of misery. Work no longer becomes a career or a journey, but more of a  taxing nuisance on your mind and body that has to get done.

    Every day that you go to work with this mindset you begin to hate your job more and more. While many people feel that they must work hard to retire and have money to enjoy themselves, what’s the point of enjoying yourself in your later years when you spent your life being miserable?

    5. No matter how much money you make, nothing will help you overcome the feeling of doing something you hate.

    Many accountants come into corporate America, put in reckless hours during the week and make a great paycheck on pay day. Many of them have all this money piled up, but they never really get to enjoy the fruits of their labor because their labor takes up most of their lives.

    Many of them hate their jobs because they aren’t really passionate about what they do. Is there a worse feeling than doing something you hate? Eventually this hatred will cause stress and in the long run, it will have lasting effects on your health.

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    6. You are more inclined to work later hours.

    When you work somewhere that you are passionate about, putting in later hours isn’t as much of a burden as it is when you don’t like what you are doing. To you, putting in the extra hours doesn’t hurt as much because you don’t feel like you are forced to do it, which makes the experience that much more enjoyable.

    Every industry has a busy season and without a doubt there will come a time when you will need to put in the extra hours. Will it be easier for you to work longer on something you can relate to or something you can’t stand doing?

    7.You are willing to go above and beyond the call of duty.

    Certain obligations at your work will require you to go above and beyond the call of duty. In certain times during the busy seasons, you may be asked to do certain tasks that are not part of your everyday schedule. It is much easier for you to put in the extra work if it’s something you actually care about. Because you are passionate about your job, you will be willing to put in the extra effort to go beyond what is required of you.

    8. No obstacle will stop you from achieving success.

    When you really enjoy what you do, nothing will stop you from getting your work done. Because you are passionate about what you do, you feel unstoppable and nothing can obstruct you from achieving greatness. Your passion ignites your work, and like a rocket, it accelerates you past road blocks that may come about. Any obstacle that comes your way is accepted and fought off with a creative solution.

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    9. Our working careers will consume most of our lives, so we might as well do something we enjoy.

    You will spend a majority of your life working and there is no other way around this fact unless you are born into a wealthy family or marry rich. For the rest of us who weren’t fortunate enough, we will be spending a good portion of our lives working in order to make ends meet.

    There is no way around this, so we might as well accept the cards we are dealt. Many people go about this the wrong way because they feel like work is something they have to do rather then something they can enjoy. Once you realize that your career should be something you enjoy, then you will lead a more happy and fulfilling life.

    10. You will get more fulfillment when you finally make it.

    There are few feelings better than achieving a level of success you set out for yourself. Nothing like crossing off your bucket list of goals you set out for yourself to achieve. When you finally reach the pinnacle, it is that much more enjoyable knowing you got there doing something you love. Remember work doesn’t have to be something that you hate doing, stay true to yourself and always do what makes you happy.

    The 10 Reasons You Should Follow Your Passion And Not The Money | Elite Daily

    Featured photo credit: Randalyn Hill via unsplash.com

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