Getting a young credit card can be one of the best ways to start building a good credit history early. In this post we want to show you the main options that exist in Colombia to acquire one, what are its benefits, its requirements, and how to prepare you to use it correctly.
The basics to know about a youth credit card
A credit card is a line of credit (that is, a loan) that is permanent (that is, it is not necessary to go back and request it when we need it again) and rotary (that is, when we use it We deplete our credit and, as we pay, the card again has the same amount of credit available for new purchases).
In other words, a credit card is a tool . This tool allows us to have money to make purchases and payments with the same ease as a debit card but with a big difference:
The money it contains is from the entity that gave us the card, not from us.
Now, a credit card is not an extension of our income . It is not our own money that we can use without having to pay it later.
In this sense, if you are looking for a student credit card, we recommend that you start by reading our Credit Card Guide and understand exactly what they are and how they work. In this way, you will make sure you make the best possible use of them.
What is the difference between your own credit card and a protected card
A protected credit card is a card that is created from the credit card of your parents or your guardian. In this sense, even if you can use it, it will not serve as a means to create credit history. The reason is that the quota of your card depends on the quota of the card that is “protecting” it.
Instead, a young credit card will be issued in your name. Therefore, you will be responsible for administering it properly, and it will be you who obtains a good or bad credit rating according to the use you give it.
How to choose your first credit card
First of all make sure you are ready and understand how this product works. Then make a plan on what things you would like to use your young credit card.
Upon purchase, check the terms and conditions of the student credit card very well. Above all, because some of the promotions they give you may be for a limited time. Find a card that gives you benefits that you are really interested in enjoying, not one that leads you to spend more to enjoy promotions that you had not planned.
Also always prefer the young credit card that costs less handling and insurance charges. The objective of this product will be to learn to use credit responsibly.
If you have questions, do not hesitate to write to us through our social networks, or commenting on this publication.