Getting a Discover Student Card is a great way to get introduced to the world of credit. The Discover Student Card, like all credit cards, does require a minimum payment each month that you carry a balance on the card.
Understanding how minimum payments work is important to your overall understanding of how to manage your credit card wisely.
This quick guide will help you to better understand minimum payments as well as some other important components of credit card management.
Getting a grip on this information while you are still a student can help to set you up for healthy credit management in the future. Let’s dive in.
Are There Minimum Payments With Discover’s Student Card?
Yes, there are minimum payments required for Discover Student Cards. All credit cards require that you make a minimum payment each month if you have a balance on the card.
The minimum payment will be calculated based on the balance on the card. You should read your enrollment information carefully to fully understand how minimum payments are calculated so that you are not surprised when you get your bill each month.
Am I Required To Pay The Minimum Payment?
Yes, you are required to make at least the minimum payment each month. If you fail to make the minimum payment, you will start to collection late fees on the card.
These fees will be added to your balance. This is one way that people get in trouble with their credit cards. These fees start to add up, and soon the balance is unmanageable.
Always make your required minimum monthly payment on time each month to avoid fees and to keep your balance manageable.
How Minimum Payments Work
Each credit card has its own method for calculating a minimum payment, but basically the minimum payment is a percentage of the total balance, plus any interest and fees.
The Discover Student card requires a minimum payment if you carry a balance of more than $20. If your balance is less than $20 then you should pay the balance in full.
Can I Pay More Than The Minimum Payment?
Yes, it is highly recommended that you always pay more than the minimum payment. The minimum payment will only apply a small amount of the payment to the balance.
The rest of the minimum payment will go toward the interest charge and any fees that have collected.
Credit cards are not inherently bad, but they can be used improperly. Students are very susceptible to poor decision making when it comes to credit cards usually because they lack experience and instruction. A credit card can be a good thing for you if you make an effort to learn about good credit behavior and always use the card wisely.
What Are The Risks of Having a Credit Card?
The most common risks associated with having a credit card is charging more to the card than you can realistically pay for at the end of each month.
The best way to use your card is to use it and then pay off the entire balance each month.
If you start charging too much too quickly to the card, you will soon have a balance that you cannot manage, and a large monthly minimum payment. If you then also start to miss payments, the balance could get unmanageable very quickly.
What Is The Best Way To Use A Discover Student Card?
The best way to use credit card is to keep it for emergencies, or if you use it regularly, to always pay off the balance each month.
What Are The Benefits of Having a Discover Student Card?
You will need a healthy credit history and a good credit score to do many things as an adult. You will need a good credit school to buy a car, rent an apartment, and sometimes even to have utilities cut on.