Business Loan-Students, Don’t Be Desperate to Start a Business with a Credit Card!

29 May

In this college period it might have crossed your mind to have a business. Sometimes the monthly money sent by parents is not enough to fulfill your diverse desires. Besides that you might have a hobby that is very popular. It seems a shame if the hobby is not used to make a profit. Therefore, entrepreneurship is a very attractive choice. has more information


Entrepreneurship in College Period

loan for students

As a student with no income, you certainly don’t have any capital. The capital in hand is only the monthly money given by parents with not too much savings. When you want to become an entrepreneur, the solution used is to use other people’s money or just to be in debt. One of the most accessible means of debt for students is using a credit card.

Credit cards offer many conveniences for users. The requirements requested are not too difficult to fulfill and the loan money limit can reach a very large number. Now it’s not unusual for a student to have a credit card. But there are several considerations that make a credit card less suitable if it is used to become a student’s business capital.



Here are some things to consider before using a credit card for your business capital:



credit card debt

Using a credit card is debt. This means that the debt is your responsibility. When deciding to use a credit card as business capital, you must have a commitment to pay the debt. When undergoing education at the college level there are many responsibilities carried out. It doesn’t matter if you feel able to bear two responsibilities at once, namely college and business. But adding responsibility for paying credit card debt is an additional burden.

Never mind committing to paying credit cards, often committed to continuing to run college and business at the same time is difficult. Especially if you have to commit to paying credit cards on time. When you can’t, you end up in arrears of debt constantly. The accumulation of debt as a result can be fatal, you know. So, are you sure you can commit to paying credit card bills on time?


  • Time Constraints

    Time Constraints

Students in general are very constrained by time. Not infrequently students are busier than those who have graduated from college and work. Because of the tight schedule of lectures and the obligation to do assignments, students generally do not have much free time. Especially for students who plan to open a business while studying.

Every student would want to have additional ‘pocket money’. One way that is considered reasonable is to open a business. It’s just that opening your own business requires a lot of time and concentration. Inevitably time and thought are divided between college and business. Even though the main task of a student should be learning.

When caught in a priority dilemma between learning and trying, usually one of the tasks will be abandoned or both will go halfway. To be able to pay credit card debt, you must really try to succeed in your business. Running a business in half will not help you pay off the debt. If you want to succeed, sometimes you are forced to ignore education which is actually your primary responsibility.


  • High Flowers

    High Flowers

Credit cards are one of the easiest means to obtain debt. With the convenience offered, of course there is a reciprocal expected by the bank. Therefore credit card interest is relatively high when compared to other debts such as KTA or credit collateral.

You might think that 2.5% interest per month is not a big expense. But have you counted the interest per year? Interest of 2.5% per month equals 30% per year. You must take into account how much profit can be obtained from the business that will be built. If profits cannot reach a number greater than the interest, you should reconsider before deciding.

At least the profit of your business must reach twice the credit card fee per year. That way credit card debt can be paid off and your goal of getting extra money can be achieved. It’s just that, are you sure that achieving such profits can be done easily? Especially in conditions of entrepreneurship while studying. If the interest is too high, you should use another loan. Either KTA or capital from parents, provided the interest offered is not as high as the credit card interest.


Consider Your Priorities

Consider Your Priorities

Using a credit card as a business capital can make it easier for you. But don’t forget the responsibility for payment that must be carried out. Before deciding to use a credit card as your business capital, consider the various priorities that are your responsibility. Very high credit card interest will be an additional burden in the midst of your busy business and business. It is better to use another loan with lower interest.