A credit card usually requires a regular, high enough income that the student may not have yet. However, many banks also issue credit cards to full-time students. The student is not required to earn income, but a sufficient number of credits is a prerequisite for receiving the card.
Many banks require students to have at least 90 ECTS credits from a Finnish university. The credit limit for student cards is usually € 1,000. However, a regular paid student may apply for a card under normal conditions.
Why buy a credit card?
Nowadays, more and more purchases are made in foreign online shops. A Visa Electron or Debit card is a good payment method for casual shopping, but when online shopping, a credit card is a security feature for the customer: if the item is not delivered or is defective, you may be able to claim credit card company for failed merchandise. Many credit cards also include product security coverage, which covers a defective product you have already purchased. However, the terms vary between card issuers.
For example, a product purchased with a Good Visa Card is insured for 180 days from the date of purchase. If the product is damaged by “sudden and unexpected external cause”, the purchase price of the product or a maximum of EUR 2 000 will be reimbursed. However, the insurance does not cover clothing, jewelry or food.
Buy airline tickets with credit card
It’s also a good idea to buy a flight ticket with a credit card. Bankruptcy of an airline or travel agency often comes as a surprise to the vacationer. Bankruptcy insurance does not cover travel insurance, and it can take years to recover the debts of a bankrupt company. If the trip is canceled or problems occur during the trip, the customer is entitled to a refund directly from the credit card company. Payments made with a debit card or online payment do not have the same level of consumer protection. A Visa or MasterCard with a credit feature is also a widely accepted and functional travel partner abroad.
Credit provides flexibility but also responsibility
The payment defaults of young people have been increasing in recent years. For students Payment problems may include: reconciling studies and work when income limits restrict earning in addition to student support, and you may not even have time to work during your studies. Today, it is also increasingly difficult for university graduates to gain access to regular employment: in March 2016, there were more than 47,000 unemployed college graduates, an increase of more than 5% on the previous year.
A student with low or irregular income should use credit prudently
Although the credit card offers flexibility in terms of payment, the amount should not exceed your monthly ability to pay. A credit card is a good payment instrument specifically for shopping where there are risks associated with other payment methods. When you make daily purchases with a standard debit card, the amount will be charged directly to your account and no unexpected costs will be incurred.