Credit cards have already been held responsible for getting many consumers into financial hot water. The truth is that it comes down to their management of their cards, rather than the cards themselves. But cards also provide a golden opportunity to rebuild financial reputations. A Chase +1 Student MasterCard is a perfect example in this regard.
Specially designed to guide students away from financial problems, the whole idea of student credit card approval might seem counter productive. After all, are students not more likely to waste their finances rather than be mature in their attitude? Actually, statistics show that most students are very mature in their money management.
The risk for those who take out a Chase credit card is real, of course, but the Chase +1 card comes with a veritable infrastructure designed to make life easier to manage and keep the cardholder out of trouble. That way, they can rebuild their credit history and keep it strong.
What Makes the Chase +1 Different?
The Chase +1 Student MasterCard is not a mysterious credit card that promises perfection to all users. In fact, it is the frankness of the card policy that makes it so different. Students do not need temptation to drag them into a worse financial situation, but they do need something with which to learn the intricacies of money management.
With this student credit card, approval brings with it a range of incentives, from an excellent credit line to no annual fee. It also comes with an introductory rate of 0% APR for the first 3 months. Once the introductory period ends, then a rate of around 14.99% is charged. Avoiding this large interest rate can be done by repaying the balance each month on time and not allowing the balance to build up.
As a Chase credit card, there are of course plenty of incentives, but the biggest one is to manage the card balance in good time, and avoid overspending. When that is accomplished, then the steady improvement in credit history can be significant.
Re-Building Credit Reputation
The task of rebuilding a credit reputation might not seem very likely for students, who have little or no history in repayments and money management. But everyone begins with a low credit rating - it is because there is no history to suggest that the repayment habit is good. The Chase +1 Student MasterCard fits into this condition perfectly.
With student credit card approval, students are given a place on the bottom rung of the credit ladder, and from there have a chance to build their own credit reputation. The card itself is a debit card in effect, with no credit actually provided. This protects the user, as much as the card issuer, against the risk of credit debt.
But unlike many other Chase credit cards, this card comes with access to advice and information to help the cardholder to properly manage their spending. Remember, that APR reaches between 14.44% and 19.99%, so poor management will prove very costly indeed.
Value of Good Card Advice
The availability of advice to cardholders is a new development in the credit card industry, with users usually left to their own devices and either sinking or swimming in the process. But the Chase +1 Student MasterCard is an investment in consumers of the future, so helping them to get it right can only benefit the card issuer and the economy at large.
And there is no doubt that students are the consumers of the future, so by granting student credit card approval, it gives them ample opportunity to master the skills needed to properly use a credit card. And once that it done, better Chase credit cards are available to graduate to, with the certainty that credit card debt can be avoided.