Many students are unaware of the advantages of utilizing a credit union as opposed to one of the major national banks. The majority of students attending college are utilizing their initial checking accounts as well as student credit cards, and may be unaware that they do not need to use a major national bank.

What is a credit union? A credit union is like a bank in that it’s a financial institution that provides checking and savings accounts as well as things like credit cards and car financing. Credit unions are for-profit and they’re owned by their members.

That means they make decisions about what’s best for their members and the community. At Aspire Credit Union, we’re big enough to take care of your financial needs but small enough that we know each member’s name.

Now that you have a better understanding of what credit unions are, is student credit card beneficial?

The decision of whether or not to get a credit card while in college is heavily influenced by your financial circumstances and how you approach money in general. For Example, if you have a steady job and are able to afford to spend on a regular basis, opening a credit card may be a good idea. Having and utilizing a credit card can help you build or establish credit, which can make it easier for you to apply for loans and other types of credit after graduation.

However, if you are not careful, it is easy to accumulate credit card debt, which can have long-term effects on your financial stability.

So, the best way to decide if you should get a credit card during your college years is by asking yourself a few important questions and taking a good hard look at your financial situation.

  • Have I ever overdrawn my checking account?
  • What is an APR?
  • Is it OK to get a cash advance with my credit card?
  • What kind of fees does credit card have?
  • What does a credit limit mean?
  • What is a credit utilization ratio?
  • Does the credit card offer rewards?
  • How will I pay off my balance each month?

If you are a college student seeking a financial institution that aligns with your values and can best help you with your financial endeavours, become an Aspire member today and apply for a student credit cards.