Student Credit Cards

Student Credit Card Applications

2009-12-13T22:59:00.000-08:00

Before you fill out your student credit card applications, there are three things you should know. Having a credit card is a big responsibility and it shouldn't be taken lightly. Be thorough when you investigate your options and use these three time proven tips to make sure that you commit to a card that meets your lifestyle and needs.

One: Interest Rates

An important consideration before choosing a card is the annual rate of interest that you will be charged on your purchases. Some cards offer a low or zero percent introductory rate for the first few months the account is open. After six or 12 months, the account reverts to the interest rate that the company usually charges, and this can be in the double digits. Be sure you know exactly what you will be charged for interest and whether the rate applies to new purchases only or to balance transfers as well.

Two: Grace Period

The next thing you need to know before you fill out your applications is what the grace period is. This is the number of days the lending company gives you before you start getting charged interest on your purchase. By paying for your purchases during this window, you save on interest charges.

Three: Annual Fees

The third thing you need to know before you fill out student credit card applications is whether the card you are considering has an annual fee. This is a set fee that is automatically charged to your credit card account each year, whether you actually use it or not.

Student Credit Cards

2009-09-10T23:57:00.001-07:00

Student credit cards are issued to high school, college and university students. The student credit card is beneficial in that they give students an opportunity to learn money management. At the same time, especially in the case of college and university students, the credit card is an excellent way to build up a credit report from a very early age. Skilful management of money that is made available ensures a good credit report, which will help the students after they graduate. A good credit rating guarantees easy loans they may need to purchase automobiles, houses and other basic necessities at a later period in life.

High school student credit cards will be issued only if the application is co-signed by an adult. Pre-paid or stored value cards are a good option for high school students who may be immature and need time to learn money management. College student credit cards do not require a minimum income declaration or an adult co-signer. There are several credit card companies active in the credit market, with tempting offers such as attractive credit limits, easy repayment options, bonus points, cash awards, low interest rates, interest free periods, fixed introductory 0% annual percentage rate (APR) for purchases and balance transfers and numerous others. A wise selection is to be made from the various choices available, preferably with the advice of an experienced person.

The student credit card is different from a debit card. The debit card system works on the policy of deducting the amount spent using the card from a declared bank account. In the case of student cards, this principal amount is lent to the student by the card issuer, and the student is expected to pay back the amount. A student credit card allows the user to ‘revolve’ a monthly balance, at the cost of a certain interest charged. While enjoying the advantages of a credit card, students should clearly understand the need for spending money carefully and avoid accumulating unnecessary debts.

Student Credit Cards - A Quick Guide

2008-12-20T00:28:00.000-08:00

We all have different credit requirements, and so the credit card companies design various cards to suit. The variant we are interested in here is the student credit card. This card is designed to help any student build their credit rating, and be useful for emergencies, which is ideal for many.

These days a credit card is almost essential for anybody, let alone students, and as such is used for many purposes including making travel arrangements etc. There is a wide selection available, and some students end up with multiple credit cards, and these are the people that are most likely to get into debt problems. The one saving grace is that credit cards for students usually have a fairly low limit, so if they do get into debt, it won’t be too extreme.

A recent study has shown that about 80% of college students own credit cards with a typical balance being around $3500. A worrying thought to ponder is that when many students use their credit cards to buy stuff, they don’t see it as spending real money.

Another worrying trend that has been reported is that a number of students are using their credit cards to top up the money that they have borrowed using student loans.

Do no take the amount you spend on your student credit card lightly. Because if you overspend or miss payments, you will end up paying extra interest, and possibly damage your credit score. This might not seem too important to you now, but trust me, it will be a pain later on in life, as it will cause problems when you come to get a mortgage or auto-loan etc. Don’t ask me how I know.

So, I will sum up by saying that a student credit card can be a very handy tool to have in your locker as you work your way through further education. Just use it responsibly and be aware of the dangers. Also, do some research, there are some good deals out there.

How to Use a Student Credit Card to Establish Credit

2007-10-01T04:53:00.000-07:00

The same problem has been going on for many years. A full time college student, or even a part time college student who is finishing degree requirements, is also working. With the pressures of studying, the work may not be full time and probably is only enough to pay a few bills and keep your head above water. But what is happening is that you are studying, you are working, and you are doing NOTHING to prepare yourself for life after you graduate and have your degree in hand.
The best thing you can do for yourself is to get your credit established via a student credit card. This fact is typically not taught in high school, and even many parents do not understand how critically important it is for one to get their credit established as early as possible.

Face it, we live in a credit-driven society, and anyone who does not have credit established is viewed as a second class citizen from a third world country by many establishments. But the danger of trying to establish credit before you are really ready for it and understand how the credit reporting system works could actually do more damage than good, since having BAD credit established is almost worse than having NO credit established. If you do not understand how the credit process works, you will be creating extra work for yourself because now you have TWO tasks -- one to establish good credit, and another to clean up the bad credit.

These days, it is generally not a problem for a college student with a part time job and modest income to establish good credit via a student credit card. Stop by your financial aid offer, where you will probably be given multiple brochures for applications. Many of these credit card companies have a student credit card program designed specifically for college students, typically giving a modest credit limit of say $300 or $500. If the college student can demonstrate financial responsibility by paying at least the minimum amount due on or before the due date, consistently, for 6 to 12 months, the card issuer is likely to raise the credit limit.

Do not rely only on brochures available in your college's financial aid office however. Some credit card companies have been accused of giving kickbacks to college personnel depending on how many students sign up for credit cards, and those cards are sometimes not the best deal that a college student can get, even a college student with no previous credit established.

A second choice, and perhaps also done in conjunction with the credit card above, would be a secured credit card. This is a real credit card with the Visa or MasterCard logo, and it is NOT a debit card but is a real credit card. The difference with a secured card like this is that your credit limit is set by the amount of money you have on deposit with the card issuer. Since there is almost zero risk to the card issuer since they have your deposit, these types of cards are readily available at almost any bank and used correctly, can establish your credit and give you a good credit rating.
One of the keys to realize is that this is not free money. In essence, you are "renting" money, and you are paying for rent via interest. Make sure you make all payments on time with at least the minimum amount due so that you can establish a good credit rating. A good credit rating will pay for itself many times over during your lifetime.

Student Credit Cards - A Quick Guide

2006-12-14T00:07:00.000-08:00