One of the more frustrating things of being a student is not having an income to qualify for a credit card. Especially at those times when you are traveling or shopping, you have no choice but to bring a wad of cash around. What’s more, without a credit card, you can’t enjoy the reward programs and claim for household items, shopping vouchers or even airline miles.
Credit card companies have realized the convenience of credit cards to students and therefore have come up with Student Credit Cards. Of course, without an income or a credit history, applicants of these credit cards have to rely on their parent’s consent in order to qualify for a credit limit. As having and using a student credit card requires a certain level or responsibility, it is best that you evaluate the following facts on student credit cards before you apply for one.
Easy money, easy debt
Many students and parents aim to utilize student credit cards to build a credit profile, but lack the foresight to see that this is actually a double-edged sword. Inexperienced with managing their finances, clouded by 0% APR and enticing reward programs, many students have fallen into the debt trap through their student credit cards. This leads to heavy debt and financial difficulties well before they even graduate.
Read the fine print
If there’s one thing common on student naivety, it is their failure to read the fine print on the terms and conditions of getting a credit card. This leads to ignorance of the introductory period for the 0% APR and the high interest rates thereafter. As it is so easy to get these credit cards and convenient to spend with them, many students fall into heavy debt once the 0% APR period is over.
How to choose a credit card
Credit card companies are getting more aggressive in their marketing initiatives that students often have a tough time making up their minds on the card of their choice. One of the best ways to evaluate a card is to obtain peer recommendations on their experience in using the cards.
Learn to manage your finances
Student credit cards provide students with an opportunity to manage their finances well before they graduate. They will need to ensure that they pay their outstanding balances on time, as well as to keep track of their allowances and expenditure.
Build a good credit history
It is a known fact that without a credit history, college graduates will have to make do with the inconvenience of not having a credit card when they are employed. Thus, in order to make things easier for the future, you need to ensure that credit card debt is well-managed to build a good credit record for easier approval on your future loan applications.
Sunday, July 18, 2010
5 Things to Know Before You Apply for a Student Credit Card
How To Apply For Student Credit Cards
Student credit cards can be a blessing or a curse depending on how they are used. As long as you don’t spend more than you can afford to, they can provide a financial cushion and help you to establish a good credit rating which will stand you in good stead in the future. If you are a student, you already know that you are faced with a lot of educational expenses that you have to pay for upfront.
If you don’t have the cash to purchase text books or readers you can be seriously disadvantaged in your studies. Even something as simple as being able to put petrol in your car to get to college can be an intermittent problem for students. So having a credit card to fall back on only makes sense.
Many credit card providers offer student credit cards with low available credit and reasonable rates. Some have conditions that automatically reduce your limit if you pay late. So you need to carefully read the terms and conditions before applying. You may qualify for a regular credit card if you have adequate part time income so you don’t need to limit your search to credit cards marketed specifically to students. However, if you lack adequate income for a standard credit card, look for one for students.
As with all credit cards aim for the lowest annual percentage rate, lowest fees and charges, and lowest late payment penalties. You want to keep your monthly credit cards to a reasonable level. Ideally, you will be able to do more than simply make the minimum payment. You will be able to pay off your credit card quickly. It is easy get into a quagmire with credit cards so plan your spending and repayments ahead of time to avoid potential problems.
The quickest and easiest way to find the best value student credit cards is to use the internet. By simply doing an online search you will discover a plethora of possibilities. However, this can still be too much work. An online one-stop credit card website can simplify the process. Instead of searching through hundreds of credit card offers you can use the services of a site that has already done this for you.
These sites then provide a selection of credit cards which offer the best value. You will still need to compare them and look for the most suitable student credit cards for your personal needs but you will be able to do this relatively quickly. Once you have chosen a card you can apply for it on the very same site saving you even more time and trouble.
Student credit cards used sensibly can help you purchase text books or pay for short term expenses until you can pay for them. However, if you are not careful you can end up with a credit card debt burden. If you only buy what you can afford, your credit card will serve you and not the other way around.
Guides to Apply For Student Credit Cards
More and more credit card companies are now issuing student credit cards. A student credit card is a students first experience of handling finances independently and entry into the world of credit card usage. It teaches them how to spend and how to save. Credit cards are issued to students only after one of their parents signs their consent. This is also done to keep track of the credit card holder and ensure returns on time.
You can apply for your student’s credit card as soon as you become 18 years old. To apply for a students credit card first of all you will have to fill out a form of that company or bank whose credit card you wish to apply for. To get more information about various companies that offer credit cards, visit their websites and study their terms and policies well. Also take a good look at all the facilities that they claim to provide you with. If in doubt seek the help of an elder who has already been using credit cards. Different companies have come up with their different schemes to lure customers. Go through all these schemes carefully and also go through their terms and conditions like last date of making payment and so on. When you have decided on a company or bank, go visit them in their office and apply.
To apply for a student credit card you must be above 18 yrs of age, must be a resident of United States and must have a valid social security number. To apply for a students credit card you will have to first of all fill out an application form providing details about yourself, your place of residence, your vehicle information and so on. You also have to provide your bank account information so make sure you have a personal bank account when you apply for a students credit card. The bank will also ask you to add an authorized user so that in case you don’t pay up they will take up your responsibility. Credit card companies have to be extra careful with students as they have no credit history to verify their claim. When you fill out your form, try to answer all the questions as it helps in verification.
You can also apply for your credit card online. All credit card companies use encryption technologies to protect the sensitive information provided by customers so it is perfectly safe to provide your details and make your transactions online. In fact applying online is much more convenient. You will get your credit card within a week or two of applying depending on your company. When you get your credit card you can use it for making purchases, paying your bills and much more. Make sure you pay back in time otherwise the interests could mount up and cause problems for you. So make sure you use your credit card carefully and always remember to keep your credit card number a secret.