Students needn’t worry about credit crunch if they are good payers

Over the years the credit card has become an invaluable tool for students, giving them some financial freedom and leverage, and ensuring that they have cash available in case of an emergency, particularly for those that are living away from home.

However, like all other consumers many students have been worrying about the effects of the credit crunch when it comes to borrowing, particularly given the various tactics that credit card providers have used to try and bring in more profit and shield themselves from bad debt.

However, a personal financial specialist has stated that students do not need to start worrying about the effects of the credit crunch when it comes to using their credit cards providing that they are good payers – and intend to continue with their responsible repayments. She said that credit cards could prove invaluable to students, offering flexibility increased protection on purchases, and security, so there was no reason why good paying students needed to worry about using their cards in the usual way.

The specialist, Samantha Owens, stated that there was not need for students to worry about using credit cards as long as they were using and repaying them wisely. She added: “Credit cards offer a lot of protection with making purchases, so if you’re the kind of person who’s been managing their money perfectly well up until now then there’s no reason why you shouldn’t continue.”

Credit card companies have, however, been using various tactics to try and get them through the credit crunch, including hiking up interest rates and transaction fees, cutting spending limits, and even withdrawing credit card facilities from some customers.