What do students have to consider with credit cards?
Anyone looking for a credit card for students is initially faced with a selection of different variants of this cashless payment method. They are all suitable for convenient payment at home and abroad, but differ both in terms of terms and the type of billing.
Charge credit card
This type of credit card is the classic form of credit card, which is still one of the most popular card models in Germany. Prerequisites for a successful application are positive Credit Bureau information and sufficient creditworthiness, which is usually provided by proof of salary. For this reason, the charge credit card is less suitable as a credit card for pupils and students. The bank grants an individual credit line based on the credit rating. All sales are billed once a month and are debited from the cardholder’s checking account. The amount is to be settled all at once, payment in installments is not common.
Revolving credit card
The principle of the revolving credit card is very popular in the USA and has recently been in high demand in Germany. It is also a classic credit card, for which a Credit Bureau query and proof of creditworthiness are necessary. The credit line is based on these results. Billing takes place monthly, but the cardholder has the option of paying this amount conveniently in installments. This makes this model ideal as a student credit card because the entire amount does not have to be paid back immediately. Since Fine Bank only requires a minimum income of EUR 500 per month, students have the opportunity to take advantage of this card as a virtual credit card.
Prepaid credit card
The prepaid credit card is considered a credit card for everyone. If the card is not connected to a checking account, it is usually free of Credit Bureau. There is also no minimum income requirement. Strictly speaking, this is not a credit card, since a credit must be paid into the card account and only then can purchases be paid for.
If this credit is used up, payments with this card will be rejected until the card account is filled up again. Charging is usually done by bank transfer, but other methods such as immediate transfer or booking via mobile phone bill are also used. An advantage of this typical student credit card is the full cost control. Since there is no credit line, it is not possible to slide into the debt trap. A disadvantage of these cards is that if there is insufficient credit, bargains can be missed on the net, as it takes time to top up.
Virtual credit card
Internet orders are common in most households. Online shopping requires flexible payment methods, which is why virtual credit cards have been in increasing demand for some time. This is not one of the usual plastic cards, but the card data is in digital form. When shopping online, the card number and CVC number are simply entered. Most providers have the credit-based virtual credit card in their program.
The situation is different at Fine Bank, where the advantages of the classic credit card are combined with those of the virtual card and this model is therefore suitable as a credit card for students. Financial experts see the virtual credit card as the cashless payment method of the future. The plastic card could soon be superfluous, especially with regard to the expansion of other mobile payment methods that can be combined with smartphones.
A debit card is basically not a credit card, but it is a popular cashless payment method. This is the checking card, also known as the Maestro Card, V PAY from Visa or Cirrus from Mastercard. When you pay, the current account linked to the card is debited directly. In principle, every account holder receives a checking card. A credit card for schoolchildren and students is therefore always an ideal addition, in order to remain flexible when making payments.
What do students need a credit card for?
A credit card for students is an indispensable companion in many areas of life. Since students have to pay attention to their wallets, this group is particularly dependent on bargains. Whether the flat share needs a new vacuum cleaner or a short trip to a friend who is spending a semester in Barcelona should be booked – the Internet usually has the cheapest offers. With a student credit card, vacation planning during the semester break is also easier. Cheap flights and accommodation can be booked online and paid for straight away.
The credit card offers students even more advantages when it comes to online shopping and other online orders. Not only the wardrobe can be put together so much cheaper. Laptops and smartphones are also cheaper online. Some specialist books have to be purchased and can therefore also be ordered online from a specialized book mail order and paid for straight away with the student credit card. This also applies to technical articles that are available for download on certain portals, as the range of the university library is not always sufficient.
Those who want a chance on the job market today and want to assert themselves against numerous competitors cannot avoid spending a semester or two abroad. Here, too, a credit card does its best. This affects the planning of the journey and goes on to the expenses of everyday life. In view of the shortness of the stay abroad, it is usually not worth opening a local bank account. Cash withdrawals at ATMs are expensive because foreign currency fees are always charged. Fees are also mostly charged in the dollar zone because the foreign banks have the withdrawal calculated.
One of the general advantages of a credit card for students is its global validity. Because the checking card is not accepted outside the European Union. Anyone who has ever spent a semester abroad or an internship in the USA knows that some online shops only accept credit cards as a method of payment. With a student credit card, young people are also much safer on the road. If theft or loss occurs, the card can easily be blocked while cash is irrevocably lost. If someone in the network picks up the card data and the incident is reported to the bank in good time, there is no damage.
A student credit card, which is a batch or revolving credit card, also offers maximum flexibility. If the monthly budget has already been used up, replacements can still be quickly obtained if the laptop gives up the ghost when writing the housework. While prepaid credit cards first have to be topped up, a model like Fine Bank then grants a real loan that can be conveniently repaid at the end of the month.
The advantages of a classic credit card for students
Many students think that they apply for a credit card as soon as they start working. The credit card offers students a lot of advantages during their training that can be used with modern financial products.
- Worldwide validity: A credit card for students is a full, accepted form of payment worldwide. This allows you to spend a relaxing holiday, semester abroad, internship and work and travel.
- More freedom to pay: If an invoice is paid online using a credit card for schoolchildren and students, there is scope for payment. The amount is only debited from the student credit card at the end of the billing period and then there is already new money in the account.
- Theft-proof: If you keep your student credit card data safe, you run an extremely low risk that Langfinger can use it to make purchases. If so, just call the blocking hotline to block the credit card for students directly.
- Protection against pishing: There are a lot of data thieves on the Internet, but those who only enter their credit card details for students at trustworthy online shops are usually on the safe side.
- No over-indebtedness: credit cards can lead to the debt trap, but do not have to. With Fine Bank, the credit line is determined depending on the credit rating. Spending more money on student credit cards is therefore not possible. Repayment is also not a problem.
Disadvantages of a classic credit card for students
The classic credit card is still considered a status symbol for the better-off. No wonder that many are wondering whether there is a credit card for students at all. The good news first – there is also a student credit card that is not a prepaid card and that has a certain credit line. While this credit card has a lot of advantages for students, there are disadvantages. This particularly affects the moments when a student credit card is declined:
- No regular income : Many providers require a fixed monthly salary to approve a classic credit card.
- Income too low: The hurdles at some banks are high in terms of monthly income. In the meantime, however, it is possible with Fine Bank to receive a credit card with an income of 500 dollars or more per month. This means that the student credit card is no longer a problem even with BAföG or a part-time job.
- Bad Credit Bureau : A negative Credit Bureau score is one of the most common reasons why a classic credit card is rejected. Banks are reluctant to look at the cards, which is why the rejection is not understandable even with a medium or good credit rating. Fine Bank does not carry out a Credit Bureau query, but the rejection of a credit card for pupils and students is only an issue if there are so-called hard Credit Bureau entries.
- Always with a current account: A credit card always includes a current account, which requires additional administrative and organizational work. If this is not the main account, an appropriate amount must always be provided for the debit period. With Fine Bank it is not necessary to open an additional account to apply for a credit card. A German checking account is sufficient as a reference account.
Why is Fine Bank’s online credit card right for students?
Although there are now many credit card providers for schoolchildren and students, these are usually only prepaid cards. Although this has the advantage that this credit card is suitable without income, it must first be replenished so that payments are possible. These transfers to the card account take a certain amount of time, which reduces flexibility. If your personal budget is exhausted by the middle of the month, it may happen that important books for the university or the new laptop cannot be purchased. A regular loan is usually not the solution, because banks are reluctant when it comes to students.
Classic student credit cards are a good choice in this case. Especially if this credit card is offered without a current account as with Fine Bank . With our digital online credit card, any German current account is sufficient as a reference, so there is no need to open a new bank account. With this credit card for students with credit lines, the maximum amount allowed is set after the application. Purchases are billed monthly. This option is particularly advantageous for students on a tight budget.
Although this offer is not a credit card without Credit Bureau, the hurdles are low compared to other providers of a student credit card with a credit line. This also applies to the minimum income of 500 dollars per month. By the way: Students who choose a credit card from Fine Bank can look forward to a starting credit of 25 dollars!
Use of the Fine Bank virtual prepaid credit card for students
Fine Bank’s credit card is a virtual credit card. The approved credit installment is available immediately after the application has been made and the card can be used within minutes.
Since it is a Mastercard student credit card, online purchases are secured by the provider’s corresponding security systems. If students want to shop online carefree and don’t want to miss out on a bargain or two despite the current tight cash register, Fine Bank’s virtual credit card for schoolchildren and students from the age of 18 is currently the best way in the financial market to fulfill one or the other dream fulfill.
Whether a flight ticket is booked or something is ordered online in another country – shopping with Fine Bank’s virtual credit card is always only a matter of entering the card details. The amount does not have to be paid back in full. However, the card can only be used to pay on the Internet worldwide. Virtual credit cards have not yet been accepted in shops and hotels. Therefore, the Fine Bank Mastercard is the ideal addition to a regular credit card at home, when traveling and during a semester abroad.