During these trying economic times, college students across the country are seeking credit cards that offer low interest rates, no annual fees, and valuable rewards that can be earned and used within a short period of time. At a time when everyone’s nerves are frayed because of uncertainty in the stock market, illiquidity in the credit market and the softening real estate market, one thing remains constant – the importance of building and maintaining a strong credit history. Student credit cards are tailored to help students with limited credit histories do just that. Visit www.goodstudentcreditcard.com for a list of some of the best credit cards for student applicants issued by Discover, Chase and Capital One.
Student applicants should understand that responsible credit card use can lead to a lifetime of low-interest rate loan opportunities. The operative word is “responsible” — if you can’t afford to buy it, you should consider saving up until you can. Stated bluntly, unless you have cash in your wallet to cover your credit card charges, you should do your best to exercise restraint. Credit cards are most beneficial to students who can afford to pay their balance in full every month. It is important to understand that credit card companies profit from compounding interest on unpaid credit card balances. If students use their credit cards and pay only the minimum balance every month, the probability is extremely high that they will quickly fall into the debt trap presently affecting so many Americans. It is a hole that is very hard to dig out of.
In these tough economic times, where credit is getting more difficult to come by, it is important to create a strong credit profile by establishing credit early and maintaining a consistent payment history. Student credit card applications can be completed online in a few short minutes. Just visit www.studentreditcardoffersonline.com to apply.
Friday, July 23, 2010
College Student Credit Cards: Responsibility is Key
Thursday, July 22, 2010
Student Credit Cards ? Great or Awful Idea?
Does a college student need a credit card? Better yet, should a college student apply for a credit card?
We all know that new credit card laws have made it more difficult for college students to obtain a student credit card. Now college students (and anyone that signs for them) need to think twice before getting that first credit.
There are many responsible credit card usage tips that college students can follow. On the flip side, there are also many college students that will fall victim to the credit card debt trap at an early age.
The question that I often receive in some shape or form is- should a college student have a credit card?
My answer is simple- all college students should have a credit card.
Before a mob of parents runs after me with blazing torches, allow me to explain myself.
1. Build your credit rating. When you make your first major purchase, whether it be a car or home, you will realize that one thing is very important- your credit score. This number makes a world of a difference. Before you do anything else you need to read about the importance of a credit rating.
The earlier you get a credit card the early you can build your credit rating. Yes I do realize the flip side here but please bare with me and continue reading for now.
Your credit rating becomes very important as you graduate from college and progress through your 20s. If you begin building up your credit at an early age you’ll notice some big wins.
2. Reap the benefits of a high credit score in your adult years. A high credit score can save you a boatload of money over the period of a loan. A high credit score means that you have good credit. Good credit means that lenders feel it’s less of a risk to loan you money. Since it’s less risky to loan you money, you can receive a lower rate on major purchases when they happen, and believe me they will happen.
A lower rate may not seem like a big deal now, but trust me it will be one day. Unless you buy your first new car or first home with 100% cash, you’re likely going to have to apply for a loan. You don’t want to be in your 30s kicking yourself in the butt for messing up your credit or for having no credit.
3. Get used to a credit card. Chances are very high that you’re going to have to deal with a credit card for the rest of your life. There are adults that refuse to possess a credit card or are vehemently against credit cards (see: Adam Baker or Matt Jabs), but it’s fairly rare to not have a credit card.
Cutting up your credit cards is too simple and it won’t solve the problem. You should get into the habit of using a credit card and paying it off monthly ASAP.
Okay now let’s go a bit further- what if you think the reasons for having a credit card are decent but you’re still not fully convinced on student credit cards? A college student should only have a credit card under the following conditions:
1. It’s a student credit card with a minuscule limit. A couple of hundred bucks to $500 max! Until you’ve mastered your financial situation completely you shouldn’t accept anything over $500. A high amount of credit available to you can be very beneficial, but it can also ruin you financially if you don’t control yourself. All college students should start off with the lowest limit possible and not increase it until income grows. On top of that, it’s also becoming more difficult for college students to get more than $500 worth of credit.
2. The student credit card is used for reoccurring monthly expenses. I’ve automated my credit card to pay for my gym membership, cell phone bill, and a few online subscriptions (I swear it’s not porn!). A simple way to build your credit without buying useless junk is to automate reoccurring monthly expenses to your credit card. We all have monthly expenses. So why not simplify your financial situation and automate your monthly expenses with your credit card?
3. The credit card is only used in emergencies. Yes I know that some will view an “emergency” as seeing a pair of jeans on sale at Banana Republic. This is where the $500 limit comes into play. Even if you lose control and splurge, you won’t go bankrupt because of it. You’ll probably have to suck it up and get an extra job to pay the credit card off, but you won’t destroy your finances.
A credit card is also extremely critical in real emergencies. Shit will happen in life. There will be times when you need money to pay your way out of trouble. Whether it be paying for a tow truck while stuck on the side of the road in the winter to having your flight delayed. Hopefully this sort of thing doesn’t happen to you. But if it does you can use your credit card and then pay it off with your emergency fund money when you get home
Find Out the Benefits of a Student Credit Card
With your student going off to college and living away from home, of course you are concerned. It is going to be expensive, you already know that, but how to make sure that your student is able to get things taken care of financially without them having to call home multiple times per week to ask for more money. In a lot of different ways, it makes sense to get a college student credit card for your student, which can make things a lot easier on you.
Of course you want to be very careful with it. Depending on your child, you may want to get a card that does not permit cash advance privileges. The temptation for the new college student who is now all of a sudden living away from home is that this now represents “free money”, and I am sure you do not even want to think about what they might spend money on.
But then again, college is a time for growing up and a time for education. There are many advantages of having a college student credit card, such as:
College Students Credit Card 101
College students credit card are the credit cards that have been specially designed for college students. College students credit card are more popularly known as student credit cards. college students credit card allow the students to experience the benefits of credit cards much earlier in their life. Through college students credit card, the college students are able to learn more about credit cards and their use. In fact, for most of the students, their college students credit card is their first credit card that acts as a gateway to the world of credit cards. Some other students might have previously used supplementary credit cards linked to their father’s credit card account; however, for such students too, their college students credit card is the first one that is truly theirs.
A college students credit card is not very different from other types of credit cards in the basic sense; they function in the same way as any credit card would. However, there are some differences, which basically arise from the fact that college students credit card are used by people who have no prior experience with credit cards and who perhaps don’t understand the concept of credit cards completely. Hence, the credit card supplier is at risk with issuing credit cards (college students credit card) to such people whom he is not sure about. Most of the students don’t have a credit history either. In such a case, the supplier of college credit card cannot be sure of receiving the credit card bill payments in time (and even receiving them at all). To counter such risks, the supplier of college credit card requires the parent of the student to co-sign the college credit card application form as a guarantee. Moreover, the credit limit on college students credit card is generally around $500-$1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to fulfil the typical needs of a student). Another risk mitigation instrument used by the college credit card suppliers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to dissuade the students from overspending on their college students credit card (and finally not being able to pay their credit card bills).
However, if we were to look at these impositions in a positive sense, we would find that these are actually in favour of the student (who is still getting trained to take on the real world of credit cards). Moreover, college students credit card also help the students in establishing a (good) credit history which is another important benefit that becomes handy when the student needs any type of loan at a later stage in his/her life.
So, a college students credit card is really something that every student should consider going for.
That Student Needs a Student Credit Card, Today
Student credit card is the more popular term to describe credit cards for young men and women attending college. Student credit cards allow their users to understand the benefits of “real world” credit card usage prior to graduating college and taking on a full time occupation. Typically, for most college students, their student credit card is their first credit card and the door-opener to the world of credit card usage. Some students may have previously used supplementary credit cards, but those credit cards are linked to their father’s or mother’s credit card account. However, it is true for those college students too, that their student credit card is the first credit card they can truly call their own.
Student credit cards are essentially the same as other credit cards. They are used in the same way as other credit cards are. Some differences come into play for student credit card users, primarily because they have no prior experience using credit cards and more than likely don’t understand credit cards, conceptually and completely. Therefore, credit card issuers are at risk when approving student credit cards for young individuals who have little or no credit or credit card usage history. The inexperience of the student credit card user, in managing their finances competently, puts the student credit card issuer at risk of receiving the monthly credit card bill payments on time and/or receiving the payments at all. To insure themselves from student credit card issuance risks, the issuer of student credit cards usually requires a parent of the student to co-sign the student credit card application form. Also, the credit limit assigned to student credit cards is lower than it is for credit cards issued to working adults. Still, the assigned credit limit is, most often, large enough to fulfill the college student’s needs. Another method credit card issuers use to dissuade college students from overspending is to assign a higher interest rate to the student credit card.
If we are to look at those seeming, previously mentioned, impositions in a positive manner, we would find that the same impositions are actually advantageous to the student, who is still training to manage real world credit card usage. Most often those impositions will assist the student credit card user in establishing good credit history. Good credit history will be important to the student at a later date in his or her life, when they want to procure more credit cards or loans.
Student credit cards are a very significant way to establish good credit. They are financial tools which most college student should consider acquiring.
College Students Should Have A Student Credit Card
Student/college credit cards are credit cards specifically designed for young men and women attending college. Though student credit cards are also referred to as college credit cards, we will use the identifier, student credit card in this information release. Student credit card is the more popular term to describe credit cards for young men and women attending college. Student credit cards allow their users to understand the benefits of “real world” credit card usage prior to graduating college and taking on a full time occupation. Typically, for most college students, their student credit card is their first credit card and the door-opener to the world of credit card usage. Some students may have previously used supplementary credit cards, but those credit cards are linked to their father’s or mother’s credit card account. However, it is true for those college students too, that their student credit card is the first credit card they can truly call their own.
Student credit cards are essentially the same as other credit cards. They are used in the same way as other credit cards are. Some differences come into play for student credit card users, primarily because they have no prior experience using credit cards and more than likely don’t understand credit cards, conceptually and completely. Therefore, credit card issuers are at risk when approving student credit cards for young individuals who have little or no credit or credit card usage history. The inexperience of the student credit card user, in managing their finances competently, puts the student credit card issuer at risk of receiving the monthly credit card bill payments on time and/or receiving the payments at all. To insure themselves from student credit card issuance risks, the issuer of student credit cards usually requires a parent of the student to co-sign the student credit card application form. Also, the credit limit assigned to student credit cards is lower than it is for credit cards issued to working adults. Still, the assigned credit limit is, most often, large enough to fulfill the college student’s needs. Another method credit card issuers use to dissuade college students from overspending is to assign a higher interest rate to the student credit card.
If we are to look at those seeming, previously mentioned, impositions in a positive manner, we would find that the same impositions are actually advantageous to the student, who is still training to manage real world credit card usage. Most often those impositions will assist the student credit card user in establishing good credit history. Good credit history will be important to the student at a later date in his or her life, when they want to procure more credit cards or loans.
Student credit cards are a very significant way to establish good credit. They are financial tools which most college students should consider acquiring.
Wednesday, July 21, 2010
Student Credit Cards FAQ
Student credit cards can be a great way to start a student down the path of financial independence and becoming a responsible adult. Many parents of students decide to open up credit card accounts for their children or to add them to their own personal accounts. But, another great option is to help the young adult get his or her own personal student credit card.
Why Should I Get a Student Credit Card?
Since a student credit card is in the young adult’s name, it helps to start building credit. The longer a person’s credit history, the better his or her credit score. Therefore, the earlier a person can start building that credit history, the better. Conversely, college student with access to his or her parent’s account can adversely affect the parent’s credit rating if large debts are accumulated. So, not only do credit cards for college students help them build a credit history and learn financial responsibility, it also protects the parents.
Why do Credit Card Companies Offer Special Student Credit Cards?
Obtaining your first credit card can be difficult, particularly if you want to get a decent APR. Credit card companies realize the value of a college education and assume that a student with limited credit history is more likely to responsible with paying back credit card debt than a person who is not working toward a solid future. In addition, student credit cards are a great investment for credit card companies because many people tend to feel a sense of loyalty toward their first credit card. Therefore, credit card companies are hoping to establish a long term relationship with students by being their first card.
Do Student Credit Cards Have Benefits?
Besides the inherent benefits of teaching the student responsibility, many do have additional benefits. Some do have rewards programs and cash back programs. Yet others provide discounts in places that are meaningful to students, such as bookstores. Not all credit cards for college students have these benefits, however, so it is important to compare all of the cards closely before deciding which one you want.
What are the Different Kinds of Student Credit Cards?
When it comes to credit cards for college students, you have two main options: secured or unsecured. Secured credit cards for college students are ones that money is paid up front in order to use, which makes these cards more like debit cards. Many college students and their parents prefer this type of card because it is still in the student’s name, it is reported to the credit bureaus, and the parents can provide the young adult with a regular “allowance.” In addition, there is no chance of building up a terrible debt with a secured credit card because a line of credit is not extended.
Unsecured student credit cards are like traditional credit cards in that a line of credit is extended to the student. These cards offer more freedom because payments do not have to be made up front. They are also convenient for the college student if he or she requires loans to help get through school. On the other hand, these student credit cards need to be monitored closely to ensure the student does not get into a debt that is impossible to overcome.
Are There Any Differences Between Student Credit Cards and Traditional Cards?
Sometimes, a guardian needs to co-sign for a student credit card, which is not the case with traditional credit cards. In addition, student credit cards generally offer a lower credit limit than other cards. Often, these credit limits can be as low as just $500 or $1,00. Student credit cards also can have higher interest rates than traditional credit cards, though not necessarily higher than the APRs on other credit cards geared toward those with a limited credit history.