A Basic Guide To Student Credit Cards
One of the most significant event in any person’s life is entering college. It represents a pinnacle of achievement that is the result of years of study and hard work. Of course there is more work yet to be done at this point but you can go ahead and congratulate yourself for a job well done.
One of the many surprises that will face you when you enter college is that credit card companies will suddenly trip all over themselves in an attempt to offer you student credit cards. Let’s face it: with the many added responsibilities and needs that come hand in hand with becoming a college student, student credit cards are almost necessities. These cards can be invaluable for a wide range of uses, from making Internet purchases, paying for gas, getting your car fixed, and even buying groceries.
As appealing as getting your own student credit card is, however, it is a major decision that should be carefully considered. They do come with a lot of benefits and advantages, which makes it tempting to simply sign up with the first credit card company that offers you one. Be patient it is important to compare multiple student credit cards available to ensure that you get one that is right for your needs and financial situation.
One thing you will have to consider is that student credit cards are not merely convenient; they can also help you build a solid credit history for your future, not to mention teach you important money management skills that you will carry into adulthood. It is therefore important to keep certain things in mind regarding the use of student credit cards.
Finally, take it easy with your first credit card. At this early stage of your credit history, you look for student credit cards that do not have annual fees and carry a credit limit of $500 or less. These are important considerations if you want to make sure that you are able to handle the financial demands of student credit cards. The relatively low credit limit will make it easier for you to afford the monthly payments.
Always pay your student credit card bills on time. This point cannot be emphasized often enough. Failing to make your payments on time can result in penalties that can wreak havoc on your finances and your credit record.
August 17th, 2009 at 1:08 pm
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September 12th, 2009 at 3:32 pm
The new, higher interest rate applies retroactively to all your purchases, so even if you charged an item when your interest rate was zero, at the end of the introductory period you must pay 13 percent (or 19 percent, or 30 percent) until your entire balance is paid off. If you let your interest compound, you can wind up paying two or three times as much as the original sticker price.
The key is to choose a card with the lowest possible regular interest rate, then spend as though you were already paying that rate on your purchases. To puzzle out which interest rate is a credit card’s real rate, look for the fine print or find the chart that lays out the rates. Look for the standard cash advance annual percentage rate (APR) and the standard purchase APR.
November 6th, 2009 at 4:44 am
The exception is promotional offers offering you a low rate for the life of the loan. If you are already trying to pay off a large sum on another credit card at regular interest rates, and you do not plan to use the new credit card for any other purchases after you have rolled over the balance, then this type of credit card promotion can be an inexpensive and uncomplicated way to pay off a large debt at a low interest rate. However, any charges you make to the card after the introductory period have a much higher interest rate, and any payments you make to the credit card company are applied to your lowest interest rate balances first. You might not be able to start paying off the higher interest charges for months or years, during which they will accrue a healthy sum of interest for the credit card company. Consider this kind of promotion only if you need to roll a large balance onto a card with a lower interest rate, not if you are looking for a credit card to use on a regular basis.
November 15th, 2009 at 4:50 am
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November 25th, 2009 at 4:54 am
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