Should College Students Use Credit Cards for Financial Management?

Financial Maturity Among Students: Embracing Credit Cards as a Tool, Not a Risk

Today’s students are no longer confined to a cash-only mindset or traditional savings habits. They exhibit a proactive financial mindset, skillfully managing their income and expenses while investing time in learning personal finance skills. For them, credit cards are not synonymous with overspending but are instead a calculated choice.

To maximize the benefits of credit cards, students should keep in mind some basic principles. Firstly, choose the right type of card, prioritizing those with low-interest rates, cashback rewards, and discounts at student-frequented places such as bookstores, convenience stores, supermarkets, or when using ride-hailing and online learning platforms.

Secondly, always make timely payments to avoid unnecessary interest charges or penalty fees. It is equally important to spend within one’s repayment capacity, avoiding the temptation to ‘live beyond one’s means.’ Additionally, students should refrain from cash advances on their credit cards, as these typically incur high-interest rates and fees immediately.

By spending wisely with credit cards, students can take control of their finances, be it unexpected expenses like tuition fees or personal development investments such as language courses or soft skill workshops. This also marks the first step in building a solid credit history for their future financial endeavors.

Visa O2: The Ideal Credit Card for Modern, Eco-Conscious Students

Sacombank has introduced the Sacombank Visa Platinum O2 (Visa O2) credit card, specifically tailored to meet the unique consumption patterns and needs of today’s environmentally conscious youth.

Beyond being a convenient payment method featuring a unique carbon measurement technology, Visa O2 unlocks a green consumption ecosystem with a host of attractive benefits. Students who spend a cumulative amount of 2 million VND or more within the first 30 days of activation will receive a cashback of up to 600,000 VND, easing their transition to this new financial tool.

Visa O2 offers an extremely competitive post-grace period interest rate of just 0.8%/month

Visa O2 is more than just a payment method; it’s an invitation to a greener lifestyle. Students can use it for eco-friendly transportation options like buses and metros, reducing emissions and contributing to a more sustainable and civilized urban lifestyle. Additionally, those who spend a cumulative amount of 2 million VND or more within the first 30 days will receive a cashback of up to 600,000 VND, making it easier for students to adapt to this new financial tool.

Moreover, Visa O2 offers a 10% cashback on transactions (up to 300,000 VND per period) at green brands like Xanh SM (electric mobility service), Vinamilk (a sustainable agriculture and dairy brand), and Decathlon (sustainable sports fashion). These are familiar and popular choices among environmentally conscious, dynamic youth.

One of Visa O2’s standout features is its highly competitive post-grace period interest rate of just 0.8%/month, among the lowest in the current credit card market. This mechanism is particularly advantageous for students with unstable incomes, helping them manage essential expenses while maintaining financial discipline. It enables them to maintain a healthy cash flow for other goals while cultivating responsible spending habits, an essential skill for their financial future.

Additionally, Visa O2 allows for 0% interest installment plans for large purchases made through Sacombank Pay, a useful feature for expensive items like educational equipment, skill courses, or travel experiences. Transactions above 5 million VND can be conveniently repaid over 3 to 6 months, with a conversion fee waiver of up to 1 million VND, thus relieving financial pressure without compromising on valuable investment opportunities.

Visa O2 also provides a convenient digital lending solution, offering online consumer loans 24/7 directly through the Sacombank Pay app at competitive interest rates starting from 12%/year and flexible tenors ranging from 2 to 60 months. This feature serves as a handy financial rescue tool in times of emergency.