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:
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.
Overview of Student Credit Card
Today, credit card is not a symbol of luxury anymore. Credit card is a great convenience, meaning that you don’t have to worry about cash when making a purchase. Even though that the requirements of getting credit card are so strict for students, but many credit cards issuer still giving a chance to let them have their own credit card. Student credit card can be used the same way as a traditional credit card, although it do come with certain restrictions and limitations that other credit cards don’t normally have.
Most banks and credit cards issuer requires co-signer for student credit card application to avoid risk in the future. This person will sign on the loan with the student, and will be the person who will pay the bill if the students are unable to do so. Usually parents will be as co-signer to back up when applying for student credit card in case the students cannot afford to do the pay out.
Some company will charge higher rate or APR for student credit card because they want to lower the risk for their company. The card spending limit may be different from one to another that can be between 250 to 800 dollars.
Students, who are planning to make a large purchase, can greatly benefit from using student credit card. To make large purchases, you’ll need good credit – which is where a student credit card can really help out. You can use these credit cards to build credit, and establish good credit rating background. Your good credit card rating will be an added advantage when you apply for a loan in the near future.
Student credit card indirectly will teach students about the sense of responsibility. The card works just like any other credit card, although the spending limit is much lower. But once the student has mastered usage of the card, he or she can manage money much better later on in life. This card is great for students to have, and can teach them money skills that will last a lifetime.
Just like traditional credit card, students should also know that student credit card can be dangerous. Even though that it is great, there is possibility such as overspending. If students spend more money than they having coming in, they will be unable to pay their credit card bill, which will then affect their credit. Need to remember that co-signer credit may affect if the credit card issuer goes after them to pay out the bill. Plan the budget every month when you finally decide to use student credit card.
All in all, student credit card is convenient to have. For students, this credit card is more like a freedom and it is a way to teach about financial responsibility. It will be useful especially during emergencies, which the biggest reason to invest in them. If your son or daughter is still studying, you can consider looking into student credit card. It can help your child to establish credit – which will take them farther wherever they go in life.
Good Effects of a Student Credit Card
Credit was used way back in 1920’s, but it was not until in 1950 that credit card came into existence. All thanks to Diners Club who issued their first credit card to pay off restaurant bills. Not long after, it evolved into something bigger and larger. Now, billions of people worldwide are using credit cards as part of their way of life.From billions of people, ten to twenty percent of those are students. Before, credit issuers shun young students, particularly college students to avail of such credit cards. Nowadays, bank company representatives are the first to chase students to sign their credit card applications. They visit schools and campuses, hoping they will be lucky finding potential and young credit card holders. A lot has been said that a student credit card will not fully help realize the student’s needs. However, that is not the case. It is advantageous when used for the right reasons; and wrong if used for the wrong ones. Depending on the end-result of a student card holder, the card can be an asset or a liability.Students must have a lot of things in mind when it comes to expenses and budget. Once they enter universities, they stay at dorms and become away from the family. This also means having freedom and making his or her decisions. Probably, getting a student credit card is one of the choices as well.Spending money will be a major concern for every student. With the help of a credit card for a student, they will learn how to finance their expenses. Take note that having one comes with greater responsibilities
College Student Credit Card Debt. Tips For Parents
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
If you’re starting at a university and beginning to ease into a situation where you will be in charge of your own money,college student credit card debt is something to be aware of. However, used wisely a student credit card might be just thing you need to get started!
These days, many universities offer credit cards to their student body and many students have found these cards to be both convenient in terms of day to day life and extremely useful when establishing a good credit line.
One of the first things to think about when considering getting student credit card is that for the most part, you are pre-approved if you are student at the university. One of the most frustrating things that can occur when you are looking for a credit card is being told that you do not have enough of a credit history to apply.
This can work against you in other situations as well; for instance, many apartments do credit checks before allowing you to rent a unit. A university credit card will allow you to both build up credit and take advantage of the convenience of having a credit card right away.
In fact, many universities that offer credit cards allow you to pay online, ensuring that you will have your credit card in a matter of days, rather than weeks. Similarly, you can keep track of all of your transactions while you are online as well, something that the major companies are just beginning to take advantage of,but be aware that college student credit card debt, can build up without you realising it, especially if your parents are footing the bill!
.
Student credit cards, especially as they offered through a university, often have kinder interest rates than otherwise. Do some comparison shopping and there’s a good chance that you’ll end up with a student card during your university years even if you do qualify for a Visa or Mastercard! While the best plan with a credit card is simply to pay it off immediately, a good line of credit at a low interest rate can really help out if money gets tight. No one wants to make the decision between textbooks and groceries, and a good university credit card help out with that.
Think of your student credit card much like a student apartment. While you would eventually like to move into a larger house or condo, there’s nothing wrong with student apartment at the moment. At this juncture of your life, you have different needs than you will later. A student credit card, while not ideal for the rest of your life, is often just the solution you’ve been looking for when you’ve newly entered the university life.
For parents college can be expensive, however for the college student, credit card debt seems to come with the territory. Do students and credit cards go well together?
There are many ways to find out if your university has a credit card available. As soon as you get to campus, you’ll probably get a notice regarding it, but if you haven’t, check the university web pages, and if there is an information center, inquire there. Sometimes, it’s as simple as clicking the right links and filling out a brief application.
Start building up good credit at this point in your life and when you’re ready to graduate, you’ll find plenty of reasons to be glad you did. College student credit card debt, is not a bad thing and on the whole, students (our future) do a great accountable job. So nothing to worry about parents!
Pros and Cons of Secured Student Credit Cards
Many college, and even high school, students have a need for carrying a credit card. Often, however, these students are not yet financially responsible for themselves and still rely on their parents to help take care of their financial responsibilities. Therefore, secured student credit cards may be a great option for parents with children who are still in school. Nonetheless, the need to weighed in order to determine if they are the right choice for you.
Pro: Secured Student Credit Cards Allow You to Monitor Spending
Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time. Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don’t have to worry about your child creating a humongous debt that you have to pay for.
In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance. You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations. This makes it much easier to get money to your child quickly if needed.
Con: Secured Student Credit Cards have a Number of Associated Fees
Although secured student credit cards allow you to monitor your child’s spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly. Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.
Pro: Secured Student Credit Cards Provide Freedom and Flexibility
One of the best pros of credit cards for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places. Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.
This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.
Pro: Secured Student Credit Cards Teach your Child Financial Responsibility
One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility. When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child’s name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future. Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.
Tuesday, July 20, 2010
The Benefits Behind a Student Credit Card
Owning a student credit card has many benefits, especially a reward credit card. It enables you start a good credit history that will be very helpful once you get out of college. Once you face the real world, many companies will be asking you to supply a credit history, and you’ll be thanking yourself for doing the right decision.Many college students should know what a good credit standing will do to you in the future. It gives you many advantages like getting a loan for a car or house, and many more. When you want to apply for a job, interviewers ask for your credit history to determine your spending habits. If you have a good credit standing and you pay your dues on time, which is a big plus to your resume.Another reason why a credit history is because it helps you apply for another credit card. Credit card companies will check your performance based on your credit standing and how well you used your previous student credit card. If you have a low credit score, this will hinder you from getting those benefits. It will also limit your financial options. Your low credit standing will have a tremendous impact on your financial future. To earn a good credit history, pay your bills on time. Apply for a student credit card to get a good credit rating. Try to make sure that you don’t exceed the credit limit and let your outstanding balance build up. If possible, pay off the balance each month so that excess fees won’t pile up on the next bill.While you are looking for a student reward credit card, pick those that offer the best incentives on every purchase that you make. There are many credit cards out there that award you with points or a 5% cash back on all charges from restaurants, book stores, grocery stores, gasoline stations, ticket airlines, movie theaters, video rentals, and more. Select those student reward credit cards that give you rewards on your points or for paying on time. You can redeem your points depending on the company’s offers: exchange them for gift cards, CDs, airline tickets, free gas, and possibly, tickets to musical performances or awards.Determine the type of cards that fits your needs and the type of rewards that you want to earn. Be better off with a student credit card that offers the lowest APR to save you more money on spending. Do your research and be sure that you manage your credit card wisely for a greater future ahead.See: College Student Credit Card Debt
Prepaid Student Credit Cards and How They Work
Often, students do not have credit records. This makes it difficult for them to obtain credit cards. In addition, if they are able to obtain, the credit limit is low or interest rates charged are high. At such times, prepaid student credit card is the best option, as it provides flexibility of a credit card and avoids accumulating debts at the same time.
No credit checks or monthly installments are required to obtain such type of credit card. The amount transferred to a prepaid credit card determines the spending limit. You can obtain such a credit card online or from a financial institution.
Uses and Benefits:
You can use this credit card wherever normal credit cards are accepted. If credit balance on the card is low, students can refill them at any time. Methods to refill these cards are through cash or check. Some card issuers also accept automatic account loading on a monthly basis.
With normal credit cards, you are not aware of the amount available on the card. Sometimes, dealers may take a small amount first and charge the full amount later. As a result, an overlimit fee is charged, which results in negative balance.
Hence, students need to monitor their credit balance and transactions on their credit cards, as they have to pay the negative balance. This also helps them to beware about financial stability and budgeting at a young age.
Benefits:
Some prepaid student credit cards allow students to build their credit history. You can apply for such a prepaid credit card, if you have a social security number. Social security number plays an important role in applying for this type of credit card. As a result, they are reported to credit bureau agencies. You need to maintain a positive credit history by keeping the card active and avoiding negative balances. Good credit records help students to get credit cards with lower rate of interest and in getting finances such as loans and mortgages.
Prepaid student cards provide students the flexibility of using credit cards without worrying about card debts. Students learn to maintain economic constancy and develop positive credit history with the help of these cards.
These credit cards function in the same manner as normal credit cards do. You can buy goods and services from different locations with these cards. They look and act as a normal card and are very similar to debit cards. You have to put some money in a pre-determined bank account to make use of these cards. If you fail to put money on the card, you will not be able to use the card.
Other Points To Remember:
Minors, who are unable to obtain cards, can get these types of credit cards. Usually, teenagers use prepaid student credit cards the most to build credit history, while studying.
Some disadvantages of these cards are:
1. There is a monthly convenience fee.
2. You have to pay an interest fee.
3. You do not get a credit.
5. They make it difficult to shop with a low interest rate.
Get Student Credit Cards for Extra College Expenses
There have been lately offers for students that feature specially designed credit card packaged for college students. These credit cards offer a combination of financing, flexibility, security and control so student can feel comfortable about managing their finances and at the same time obtaining the benefits that credit cards provide.
With student credit cards you will be able to afford extra college expenses that are not directly related to the studies but have incidence on college life, like purchasing groceries, paying for college material (books, electronic equipment, etc.) and many other expenses that can not be faced with regular student loans due to the fact that they do not fall on the college expenses category.
Student Credit Cards Explained
Student credit cards are specially designed for students. There are secured credit cards which can provide some control over the expenses and prevent debt accumulation because the credit card holder needs to make a deposit into an associated account and only then he can use the credit card up to the deposit’s limit. The deposit works just like a guarantee of repayment.
Unsecured credit cards are also available however and provide different benefits for students. Credit limits may be lower than regular credit cards, but they provide promotional interest rates and other advantages like agreements with certain stores where most students purchase goods and services.
Financing And Flexibility
These credit cards are specially made to meet student needs that due to the type of expenses that college implies need financing and flexibility. There are certain months where book and studying material purchases will raise expenses, others where entertainment and vacations raise expenses and other months where expenses are reduced and remain on a normal level. Without financing there would be a lot of discipline and saving capacity needed to cope with this situation.
Instead, student credit cards will provide you with the ability to purchase anything you need and distribute payments along the year in an even way so as to avoid compromising your income too much. These cards also allow parents to exercise some control and review over their children financial and credit behavior.
Security And Control
Both for students and their parents, credit cards provide a fantastic tool to control the expenses so as to analyze credit and financial problems that college life may imply. Also they provide security in case of accidents or unexpected expenses as they provide financing when cash is not available. Thus, student credit cards are a must for college life and if used correctly they will not imply costs to the student or his parents.
Nevertheless, when applying for a student credit card, you should not go for the first offer you receive as there are many financial institutions competing in the credit card market and offering different credit card products with varied benefits. Just do a quick search on the net for different credit cards and compare what the credit card issuers have to offer you. Only apply once you have decided which offer best suits your needs because by doing so you will make sure to get the most out of your student credit card.
Student Credit Cards
The credit card business has spread to cater every section of society world-wide. Normally, companies target people who have the means to personally repay the unpaid money balance. Students have been allowed this facility, even if they are not earning. are getting popular with students in America. At that stage of their life most of the students are usually unemployed. But, they do have to incur certain expenditure on tuition fee, books, projects and more. They can tide over emergency expenses with a credit card and need not wait while their parents transfer money. are easy to come by, but the interest rates are higher than normal. For that matter, late payment fee is higher and credit limits lower. Parents guarantee payment of unpaid amounts and pay off the credit bills. If a student gets into the bad habit of over-spending he will be sowing seeds of a poor credit rating, which can hamper his credit as an adult. But, a credit card is a wonderful tool to inculcate in your child the virtues of planned spending. That way he grows up to be responsible for his expenses and keep his credit rating intact by building a good credit card history.As holders of credit cards, students are entitled to all rights and liabilities that come with credit cards. The Fair Credit Billing Act is applicable to each type of a credit card. are no exception and students can be even be punished or charged for any unauthorized use of their charge account or for any billing errors of their account. In conclusion, students may be advised to use their credit cards most responsibly and judiciously to avoid falling in a debt trap.CASH BACK CREDIT CARDSCash back credit cards offer a 1% rebate on every purchase you make. You may also get gifts for the shopping you do on your cash back credit card. Most big companies offer cash back credit cards to selected customers only. Persons, with a good credit report or clean credit history are most sought after. In case you hold a cash back credit card it means that you are not bankrupt; nor do you have any unpaid bills. Most of the cash back credit cards are generally offered to those who have a credit score of 700 or better, other than a clean credit history. Some insurance companies prefer dealing with customers holding cash back credit cards. You may even have your loans easily processed by banks. However, be warned that such cards have inherent high rate of interest. It means that the benefits you derive can easily be offset by the high interest you may pay on monthly unpaid balance.Use your credit line judiciously. Many card users have, unfortunately started using credit cards as a principal means to support them, whereas credit cards are meant to help you when you fall short on cash. With high rates of interest, the unpaid amount escalates beyond one’s paying power. Credit cards are debt traps, if used injudiciously. Young people are getting attracted to credit cards and their whole perception of money spending changes. They start perceiving credit as free money. Credit cards charge heavy interest on out standings and before a card holder realizes he is caught in a debt trap. He tries to get out of this situation by getting more cards and transferring the balance to the new card. It might give him temporary relief, but it causes untold harm to his credit rating.
Monday, July 19, 2010
Student Credit Cards Help Kids Build Credit History
Student credit cards can help kids build their credit history. A student credit card is available to kids in college and offers a number of benefits to customers. Kids can build their credit history and improve their credit score with help from a student credit card.
Teach Kids About Responsible Credit Card Use
Parents need to work with kids to teach them how to use credit cards responsibly. Experian and USA TODAY surveyed college students in 2006 and found that more than 25% of college graduates surveyed delayed buying a home, 14% waited to have kids and 11% delayed marriage because of credit card and loan debt. Ordering children’s free credit reports are a great way to get the conversation started. Parents should share their credit histories with their kids and have open discussions about the responsible use of credit cards and debt.
Warn Kids About the Risk of Identity Theft
Kids need to be warned about the risk of identity theft. According to the Federal Trade Commission, people between the ages of 18 and 29 represent the largest group victimized by identity theft. College students can order their free credit report annually and review it for mistakes. Suspicious items found in credit reports should be immediately reported to the credit bureaus. Kids also need to use caution when throwing away mail to avoid the risk of identity theft . And students should keep all personal and financial information hidden when they are in class.
Build Credit History With a Student Credit Card
Kids can start to build a solid credit history with a student credit card. Kids benefit from student credit cards, designed for the unique needs of college students. Student credit cards include rewards cards, low interest cards and balance transfer cards. Student rewards credit cards give customers cash back or rewards points for purchases. Low interest credit cards and balance transfer credit cards can be used to pay off or reduce high interest credit card debt.
Encourage kids to talk about the credit card offers they receive, and take the time to help them review before they apply.
How to Choose the Best Student Credit Card
Choosing the best student credit card certainly doesn’t have to be a complicated process. Sure, there are a few things every applicant should keep in mind, but most of the credit card offers made available to college students these days are pretty decent. So how do you choose the best student credit card?
It’s not all About Free T-Shirts!
If you take one thing away from reading this article, please make it this piece of advice – don’t choose a student credit card solely on fact that they’re giving away a free t-shirt or other trinket to those that sign up. That’s a really major
Understanding the Benefits of a Student Credit Card
If you are a college student, whether in your first year or getting ready to graduate, one thing you need to start thinking about is your finances. When you get out on your own, your credit is going to be a very important thing. Your credit can influence your job, getting insurance, finding a place to live, and the ability to get credit and loans. Even though you are still in college, it is important that you begin to think about how you can build up a good credit record. One of the best ways to start building up good credit is to go ahead and get a student credit card.Unsecured vs. Secured
There are two types of student credit cards that you can get. One type is a secured card, which means that you actually have to put money down on the card before you can use it. Then you will have a credit limit of the amount of money you paid the company. An unsecured student credit card does not require that you pay any money up front. You will receive a credit limit, which usually starts out between $300-500, and when you make any purchases with the card you will have to make monthly payments on your credit card.
With an unsecured student credit card, you can usually request a credit limit increase after 6 to 12 months of timely payments of at least the minimum due or more.Benefits of a Student Credit Card
There are a variety of great benefits to having a student credit card. First of all, it gives you the opportunity to start building up real credit before you are out there totally on your own. It is also very easy to get a student credit card as well. Most companies view college students as a great group to give credit cards too, since they know most parents will help their kids out with paying the bills. A credit card for college students also provides you with the opportunity to learn how to budget your money and handle your finances as well.Cautions When Using a Student Credit Card
A student credit card is great for building up your credit; however, it is important that you only use it in a responsible manner. You will need to make sure that you never go over your credit limit; in fact, you should really try to stay below 50% of your credit limit if possible, since this will give you the greatest benefit in your credit score with the credit bureaus. Also, make sure that you always pay off your credit card bill on time. If you make a late payment, that will go down as a negative mark on your credit report. Whenever you can, it is also great to pay off purchases every month, which will raise your credit score and also help you make sure that you avoid getting any finance charges.
For students who are trying to get started early on achieving good credit, a student credit card is a great option. Why not check out the student credit options that are available to you and see how you can begin improving your financial future.
Charging Away From Home: Knowing College Student Credit Card Offers
A credit card can be a great advantage to a college student, especially one who is studying far away from home. The rush of college life can give students very little time to line up at the ATM or bank to get the cash they need. A credit card can save them time, since all they have to do is whip it out and have it swiped, provided, of course, that the merchant has the ability to charge purchases to credit cards. A credit card can also give them the chance to buy or charge expensive or emergency purchases, such as hospital bills or laptops, without worrying if they can pay the bill off immediately.
Credit cards, however, can be abused if placed in the wrong hands. Not all college students are aware of the high overdue charges imposed on unpaid bills, and, in the hustle and bustle of schoolwork, are prone to forgetting to pay off their credit card debts. Not all college students are aware of their spending habits, and they may charge too often to their credit card, so that they find out that they are deep in debt only when it is too late. Moreover, not all merchants are equipped with credit card swiping machines, so it can sometimes be difficult to make purchases on important products.
Take all these advantages and disadvantages into consideration when you scrutinize college student credit card offers. Many college students are actually encouraged to get credit cards for themselves, and right out of high school. Some credit card companies offer higher credit limits for students who graduated a certain grade point average; in fact, such credit cards can make great graduation gifts, as they can come with free items that can delight the incoming college student. Other credit card companies offer to maintain this high credit limit for students who maintain a high grade point average throughout college.
There are many incentives associated with school, so take note of such incentives as you examine the college student credit card offered to you. Make sure, however, that you understand all the other incentives well: you might be offered rebates on gas, as well as discounts at stores that sell school supplies, provided that your total purchases reach a certain amount. Although such discounts can look attractive, make sure that the required amount you have to purchase is not too difficult to reach, or is reasonable for both your needs and your ability to pay your credit card debt.
Before filling out the credit card application on your college student credit card offer, study your spending habits for at least a week. How much money do you spend on food? How much do you spend on incidentals, or things that you simply want to enjoy? Do you spend on bars, drinking, and late night escapades? Do you spend a lot on school supplies? Your spending habits will balloon when you have a credit card, so know yourself perfectly well before plunging headlong into that application.
If you think that you can pay off your credit card debt, then read that college student credit card offer carefully, and fill the application out. A college student credit card can give many other incentives, so study these incentives and know the rules and regulations governing the use of the credit card. Know your credit limit well, and take note of the high interest rates imposed on overdue bills. Moreover, set up a method to remind yourself to pay your credit card bills. If possible, set aside a certain amount of money each month that will go into paying your credit card debt.
A college student credit card has many advantages for the wise college student. As long as you know yourself well, and can control your spending habits, you can use the college student credit card without sweating come paying time.
Sunday, July 18, 2010
5 Things to Know Before You Apply for a Student Credit Card
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.
Your Student Credit Card Rights
When students apply for credit cards and sign on the contract, credit card issuers assume that they have gone through every detail. Even though majority of the authority rests with the issuers, you need to understand your basic rights over the use of student credit cards. Fair Credit Billing Act bestows certain rights on students. While exercising such rights, students need to ensure they do not go against the rules as stated in the act.
Disputable rights
Any action students wish to take has to be in order and within a specified timeframe. Students may come across problems, while using credit cards, most of which are concerned regarding purchases. As such, they own the right to dispute over some issues. The disputes mainly arise in billings you receive from merchants. What if someone has unauthorized access to student credit cards? To tackle such complicated issues, Fair Credit Billing Act (FCBA) offers certain disputable rights to students.
Nature of Disputes:
Billing: Often you, as credit card holder, may have a dispute with merchants for goods, which either you do not receive or are not in good condition. If this happens to you, follow the steps as below:
1. Within two months from the date of receipt of first statement that lists the dispatched item, contact your credit card issuer in writing. Use separate address for billing inquiries. In addition, make sure you mail the letter including your name as it appears on your account. Mention the account number, complete information of the item you wish to dispute and your specific need, be it rectification of mistake from the (merchant) delivery end.
2. Sign the letter before sending across. Preserve a copy of it for future reference. Any supporting documentation you send such as receipt, maintain a copy of it too. Stick to mailing method, which proves you have disputed over anything with the credit card issuer and it acts as certified mail. Accordingly, expect a notification from the issuer within thirty days, since the day of sending the mail. The issuer will then investigate into the matter in question and get back to you.
While investigation is on, you neither make payment for the disputed item nor for any charges that may arise due to it. You are free from any potential liability, if the case is in your favor. Otherwise, you are responsible for paying as mentioned in the cardholder agreement.
Charges without official authorization
These problems are often times associated with student credit cards. For student credit card holders, their responsibility for disputing unauthorized charges is restricted to $50. It may seem uncomfortable to pay $50 for you. Many credit card holders suffer heavy losses, as many cardholders are falling prey to identity theft.
Disputes normally arise as with the use of student credit cards. Often, due to identity mismatch, you might suffer greatly. Be the dispute of any nature, you have the right to fight for it with the credit card issuer. Make sure you dispute in a legal manner and as stated by the FCBA. It is best to talk to an attorney to know more on your rights as a student credit card holder.