Student Credit Cards » Credit

Student Credit Cards With No Fees

admin — Sat, 29 May 2010 01:49:11 +0000

Many times students apply for a credit card and without thinking end up paying a high annual fee. No annual fee is very important to all college students. Keep in mind that the annual fee and interest rates can become outrageous. You find that by paying high interest rates along with a high annual fee that most of your credit limit is used. You need to make sure that does not happen to you. Always check out your contract before you sign it. You need to make sure that the credit card company is offering you 0% APR on purchases and balance of transfers for at least six months. You should also try to get your credit card with no co-signer involved. Whenever a co-signer is required then you are not getting credit for your payments but your co-signer is the one who gets credit from the reporting credit bureaus.

Your first credit card and your pay history are very important to you. This report goes to the credit bureau which puts out your score for any more credit that you might want to apply. You may find that you are in the need of a car for instance. When you go to apply for credit your history of paying back the credit card will determine the type of debtor that you are and this is important in order to get more credit. When you do get your credit card it is important that your annual fee and interest is not so high that it makes it impossible for you to ever get out of debt with the company.

Student Gas Rebate Credit Cards

admin — Sat, 22 May 2010 11:09:32 +0000

The average college student spends time traveling especially over the holidays and summer that is why it is important that they carry a credit card that offers gas rebates. The high cost of gas for the vehicle can practically put shackles on the average student since they have a very low income while in college. Many students work while they are not studying on a part-time job but they need transportation while in college. The average student usually walks while on campus but going to work, doing outside activities, and going to church requires that they drive some sort of vehicle. The students who live relatively close to home like the idea of going home over the weekend when possible. Many students take their spring break as a vacation time and go to where the climate is much warmer. Some students prefer to go skiing but normally no matter where they go it does take gas.

A student should consider their credit card and the advantages that are given to them but make sure that one of the perks are gas rewards or cash back when they use their card. There are over the road credit cards that give back cash for charging their auto maintenance and gasoline used. One of the most popular for this expenditure lets the average student earn 5% cash back is the Discover Card. This is one that many students should check into because of the cash back features.

When it comes down to saving on gas, the easiest thing to do is get a gas card. As long as you pay your bill off in full each and every month, you won’t have to worry about any interest rates being tacked on. Gas rebates cards are almost like a discount card if you use them right. As long as you do your homework, you should be able to find a card that suits your needs.

Student Credit Cards in Today’s Economy

admin — Wed, 19 May 2010 20:30:05 +0000

Students are on summer break looking forward to returning to college in the fall and knowing how the economy is worried about their future when it comes to credit making them a little bit apprehensive. There is no need to worry for the credit card companies are well and alive, looking for new students to lend money to and wanting to increase the amount of money that the older students are presently able to borrow.

Money is now moving on the wheel giving cause for lending institutions to once again open up their doors and welcome new customers. Students are usually on top of the list when it comes to lending out money. Many students have jobs now that make it easier for them to repay a loan and their career goals are excellent when it comes to lending from major institutions.

There is no need to worry about the ability to borrow money when you are a college kid since lending institutions stay in business from the profits they earn from loans. If it were not for the younger generation who makes loans and pay back interest rates and yearly membership fee’s lending institutions would soon go broke putting them out of business. The welcome sign being posted most lending institutions are offering different perks to get your business.

A student should just be careful before they sign the agreement to borrow money getting a credit card. Many times a good bargain may go sour in a few months that are why you should make sure that the opportunity presented to you is not a temporary one but one that will last the whole contract. Lending institutions sometimes put stipulations in the agreement that after a certain length of time the interest rate changes costing the borrower more money.

Student Credit Cards Pros and Cons

admin — Mon, 10 May 2010 22:16:18 +0000

Most people agree that learning to manage one’s personal finances at an early age is imperative. I certainly did not have much guidance in this area when I was studying and between seeing my friends and cramming for exams it did not rate as a high priority! Financial independence is something most human beings strive for yet very little is taught on this subject at schools and universities alike. It is a shame that such critical life skills are rarely addressed in our youth unless our parents are particularly diligent in this area, as many of us have to learn our lessons the hard way.

Whilst at university I observed many of my friends struggling with student credit card repayments. These guys had fallen into the easy trap of spending money they didn’t really have and leaving the worrying for a rainy day. Well guess what? When it rained it poured! One particular friend of mine was spending a lot more on his credit card than he was able to earn each week. I’m sure it was nice buying all those girls those drinks but was it worth the headache of insurmountable credit card interest repayments? This friend still pays to this day for his mistakes as his credit history will not qualify him for anymore credit of any kind. This is quite sad because credit actually can be beneficial to those who manage it appropriately. In fact it could be argued that every human being will need or at least benefit from some type of credit in his or her lifetime. You may know that it is very rare for investors to use their own money in business, instead they leverage the bank’s money to gain profit for themselves before paying the bank back. This an acquired skill and a whole other topic.

So, the question is; should students have their own student credit cards? Despite my rather bleak introduction to this article I would say absolutely yes. I say yes because as I said there are many benefits of having some credit. Also, learning how to manage credit from an early age will set you up to avoid some serious financial headaches in the future. Remember my friend? Trust me, you don’t want to end up like him.

Student credit cards are readily available these days. All major banks will actually have a range of credit cards specifically suited to the needs of the student. Often this might mean reduced rates, student focused benefits, etc. Applying is made very simple by websites like http://www.uscreditcardguide.com where you are able to review the best offers from different banks and also apply online for fast and easy approval. Just remember to have your personal financial information on hand so you can fill out the forms correctly.

There are a few reasons I believe it is important for students to have their own credit cards. Firstly I recommend every student have an ‘advisor’. An advisor can be a professional, a parent or family member, or friend with skills in this area. Most college campuses will offer free financial advice to its students as well. An advisor can help you with budgets, understanding interest rates and help you understand your unique situation. It is important to understand your earning capacity and know whether it will allow for credit card repayments.

It is very beneficial to anyone to establish a credit history which banks use to assess further loan and credit applications. If you wish to own your own home you will have to go through this one day and the longer you can show have adequately maintained a credit card and its payments the better chances you will have.

Financial emergencies, which all of us can relate to, will also come up and a credit card can really make things easier to manage these little crises. Often a low limit of $500 to $1000 is all you need to cover some unexpected expense. It is a great feeling knowing you can handle these situations without having to phone home or borrow from a friend.

Simply using credit cards to pay for things and then transferring money from your savings account to cover the costs on your credit card is a good way of earning benefits from your credit card supplier. These benefits will range from frequent flyer points to shopping credits. Check some really cool student cards including the extremely popular MTV Card.

Student Credit Cards Are A Step Towards Financial Responsibility

admin — Sun, 09 May 2010 23:52:38 +0000

A recent addition to a college student’s must-haves is a credit card. Along with the cell phone, the credit card is becoming more and more prevalent among young people ages 18-25.

Perhaps it is but natural for credit companies to mine this previously untapped market. More and more products and services are being targeted towards these customers. And the more cool stuff is out there, the more they will want to buy – if not with cash, then on credit.

Unfortunately, the problem with swiping away plastic is just that – students fail to realize that with each swipe they are one step closer to debt, which they may be unable to manage. That is why it is important that the right information on the judicious use of credit cards be made available to students.

That is not say that a credit card per se is a bad thing. In fact, when used wisely, it becomes a smart way for young adults to build their credit history, which they can continue to build on as they becoming self-supporting professionals.

Having a credit card also teaches students financial responsibility – showing them that it is important to live within means. It makes them aware of concepts such as principal, interest, balances and debt. The earlier they get comfortable with these, the better they can cope further on in the future.

On the other hand, young adults can still be prone to financial naiveté particularly when it comes to fine-print terms and conditions. Perhaps in the excitement of being issued their own credit card, they may simply skim over, if not totally forgo, reading the terms and conditions the credit company stipulates over the use of the credit card.

It is possible for someone of that age to be content in knowing that their card offers 0% APR. What they may not be aware of is that the offer is for a limited time only or that if monthly payments aren’t fully paid, a high finance charge will be applied.

Although nearly 80% of college students today own more than two credit cards, it is unfortunate that less than half are able to pay off the monthly balance. This only proves to show how little effort is made to educate students on the right usage of a credit card.

If you’re a student considering getting or already owning a credit card, or if you know someone who does, here are some things to help you get started on learning how to use a credit card wisely and to manage finances in general.

- Consider the nature of your income and how much of it is stable income.
Credit card statements come in monthly. Therefore, you should know how you would get the money to pay for these. Stable income is important because you will be relying on this to make those regular payments. If you don’t have a steady source of income, rethink getting a credit card. Continuing with one in spite the lack of a stable income will run you into debt in no time.

- Observe your credit limit.

Unless you specifically ask for it, a credit company will set the limit for you. To avoid unmanageable debt, your credit limit should be around 25% of your stable monthly income. So even if you’ve topped off your credit, you’ll still be able to pay off the monthly balance. If your credit limit is beyond 25%, call your credit company right away and ask for an adjustment.

- Designate purchases

Credit cards should not be your primary method of payment. It should only be a means to bridge gaps in your cash flow. As early as possible, develop the discipline to limit certain purchases for your card.

For example, it is a practice of some to charge important things such as rent and utilities to a credit card. The rationale for which is that even if the cash income is delayed, payments for the essentials will not. However, the idea is that the balance will be fully paid off by month’s end.

These tips should get you started as you build a good credit history. You may start out small now, but as you learn good financial management early on, in the future, handling bigger things will hopefully be easier.

Student Credit Card Traps

admin — Wed, 28 Apr 2010 02:51:31 +0000

When you go off to college for the first time there are many things that you find you need and perhaps just not enough money to pay for them right at the time of your needs. You hate to keep asking your parents for things as now that you are an adult you like to be able to pull your own weight in some things. You find that you are making a small amount of money working part time so you feel that getting a credit card would help you with your extra expenses. You believe that you will only charge a few items and with your part-time job you can easily pay the credit card company. You should watch out for the “Credit Card Trap” that students find themselves deep into before the first semester is over.

Many credit card companies visit the campus to entice you into getting a card. You find that each time you use it you are borrowing money and that a high interest rate is being charged. You are getting deeper and deeper in debt and your part-time job no longer pays the bills. Then you find that you are applying for a new card to pay off the old credit card which only makes your situation that much worse. Just as you go shopping for those things you need for your room and to make you comfortable you should shop for the best credit card deal available. The many credit cards offered to you on campus is not always the best deals for students.

When you are looking to get a card check out the three key features that will help maintain your budget and keep you from going too far in debt by owing too much on your credit card. When you are shopping for one select one that offers no annual fees, a reasonable interest rate and online account management. You do not have to select a credit card because it is being offered by the college you can go online and find one that is best suited for your budget. You should not skip a payment make sure that you are on time and if possible pay more than the minimum required each month. The minimum normally covers the monthly interest and a small percentage goes toward the balance due. In order to get out of debt the best thing is to pay more than the amount required and you will find that soon your debt will not be over powering.

Student Debit Credit Cards

admin — Fri, 23 Apr 2010 23:51:49 +0000

A debit card is a great way for any student to be able to receive money from their parents while they are away from home at college. The debit card with one of the major logo’s like Visa, MasterCard, Discovery or American Express can be used just about everywhere there is an ATM machine. These cards are usually accepted by all major retail businesses and at hotels all around the country. Many times students are able to make reservations on airlines and book their hotel room by using the debit card. The debit card is very popular among students and parents since it gives both the opportunity to control the spending and keep track of how the money is best spent.

One of the nicest features about a debit card is that when you have obtained the card from your bank it is very easy to turn this card into a credit card where the student has access to cash when it is needed. Many times the bank will allow charges to go through even though the cash limit has been drawn against the account. It is wise not to depend on that unless you have made your card into a debit/credit card.

You can secure your card very easily by opening up a savings account that will guarantee funds in case of an overdraft. Most banks are very happy to let you go over if they have some secured funds in a savings account that they can transfer out to the card. You will pay a fee for this service but it is great to have especially when you are traveling.

Student Credit Cards and Budgeting

admin — Sun, 07 Feb 2010 03:45:20 +0000

Parents your child is off to college and you are concerned about their financial well-being. On campus there are agents trying to get you to sign-up for a credit card for your child. You are wondering which credit card is the best one and what limits should you set. Now you need to remember your student is no longer child and very capable of making their own decisions about a credit card. Then you know again that your student might not yet be prepared to have a credit card. What a dilemma! What should you do? First relax take a couple of deep breaths and perhaps go for a cup of coffee with your child. Take time to discuss exactly what the credit card is going to be used for and when it will be needed the most. Then determine with the budget plan you already put together just exactly how much credit is going to be needed. You will discover in most cases a credit card is best used to help your child control their budget.

Now that you are planning on getting a credit card for that purpose then you can determine the type of credit card that best suits their need. There are several selections such as unsecured, secured, debit card, or a prepaid card with the logo so your student can use the card just about anywhere. You plan on putting the money out for the card or is your child going to be paying for their own line of credit? If you are planning on putting money into their account on a monthly basis then a prepaid card is the best solution and cost effective otherwise an unsecured card is the next best choice.

Student Credit Card Perks

admin — Fri, 05 Feb 2010 03:28:35 +0000

You are trying to get the best deal possible for your credit card and wanting to have perks included makes good sense. Credit card companies make plenty of money for the privilege of letting you use their services. This makes it very easy for them to allow you to have perks. When you do apply for a credit card look for one that offers you rewards.

One of the most popular types is when they give you air miles. Many people who travel like this perk the best. Whenever you use the credit card to buy something or buy airline tickets the credit card company will issue points to your account that you can use for airline miles. When you get enough miles to use for such a trip then all you need to do is book your flight and use your airline points instead of cash or credit card charge. Since the credit card company already has on record your travel mileage then it is very easy to get the ticket to any destination you are seeking.

The next best type of credit card is those that give you cash back for the spending of your credit card on products and services. Discovery is one of the first credit card companies that started this program but now other companies like MasterCard and Visa offer the same perks if you wish to have that type of charge card. Many people prefer actual cash back as opposed to airline mileage or points to use to buy merchandise.

The other type of perk is the point system for using your credit card. Banks are now using this system instead of the traditional give you a toaster for opening up a new bank account. This system works very well with other retail businesses as well. The idea is whenever you use your charge card to make a purchase that you will receive points. The point system usually comes with a catalog of products like suitcases, DVD players, clothes, kitchen products, and many other types of merchandise that require so many points in order to get the product. You earn your points until they add up to the amount you need to get whatever product that you like.

The credit card companies know full well that people like this type of promotions and that is why they use these perks in order to people to use their cards. The fact is they earn a lot of money from you with fees and interest rates when you use their card. The credit card companies gain even more when you constantly use your credit card. Credit card perks are really not perks at all just another method to get new users and keep the old users using the card and paying out more for fees and interest.

Student Credit Cards and Parents

admin — Wed, 13 Jan 2010 10:57:08 +0000

When a student gets ready to go off to college and they are at the initial enrollment many times an agent is available from the credit card companies to encourage and sell a credit card to the new student. Today with the economy being in such a bad state it has been determined that many college students are too high a risk for a student card. The quota that the credit card companies seek in this area has greatly dropped in order to cut back on the amount of credit that the lenders give.

The lenders are now more fearful of the risk that a new student may poise that is why the cards are now being issued to the parents instead. Many parents already have cards and the lenders can use the credit score and paying record of a familiar client before issuing new lines of credit. Most lenders prefer to know that the parent is backing the card preferably in their own name rather than that of the students.

This may be good for the lender but it does not help the student to build a credit score that they can use after graduation. The student may not be able to use the reward points because usually only the person who owns the credit card can use the points. Most parents do not like this idea because they want their student to be able to come home or make other trips by using the points earned by their student’s use of the credit card.