Finance Tips

students credit cards are very popular folks with little or no credit. Student cards are designed to allow teenagers and the younger generation to not only build their credit history but also develop a sense of fiscal responsibility.

Students are often looked at as risky prospect by credit issuer. In fact, research has shown that a whole lot of young folks miss their payments or go over their card limits. You can’t possibly build a good credit history with that attitude. That’s why companies such as Chase and Discover focus on training students to become responsible individuals.

The selection of student credit cards on the market are not as wide as consumer or business credit cards. But you should do your due diligence to get the card that allows you to build credit history and get rewards back for being responsible. Here are the factors you should consider before applying for a student card:

Reputation: you should take into account the card issuer’s reputation before applying for a card. If you have paid attention to credit blogs and forums, you probably have seen a lot of complaints made by card holders about how they have been treated by their issuers. For example, If you end up with a credit card that doesn’t do you justice with their reporting, you can’t build your history the proper way.

Rates: your card APR determines how much you can save with your credit line. It’s true that student offers are less lucrative than consumer and business offers, but that doesn’t mean you should settle for a subpar offer.

Fees: you should always read the terms and conditions to find out about your card’s fees. A lot of student cards charge an annual fee but you should try to avoid paying annual fees at all cost.
Applying for a student credit card is a process that should not be taken lightly. It’s true that you can always apply for other cards in the future, but you should try to build your credit history properly in order to make sure you qualify for the more lucrative offers in the future. Student offers are the first step towards building a long-lasting good credit history, and that’s how you should look at student cards: great credit building tools.

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.

Students are often prone to fall under huge credit card debts due to some common mistakes done with credit cards for students. Below are some of the common mistakes that students usually make with their student credit cards.

Students make many mistakes while choosing student credit card. For instance:

Instant sign up for the first card offer:

This is the most common mistake that most students tend to commit. As they step into college, they get many credit card offers from numerous credit firms. If you are not serious about this and just sign up for the first credit card offer, chances are more to lose those good offers coming after a while. Thus, wait and look out for some reasonable offers.

Often, students are attracted by a card offers that offer goodies such as t-shirts, video games, and DVDs. Always try to avoid committing this mistake. You need to understand that these goodies are just promotional offers that hardly ever resist. Hence, always sign up after comparing and reading the terms and conditions of at least three or four credit card companies thoroughly.

Using Beyond the Credit Limit:

This is another common mistake. Often, these credit cards come with a huge credit limit, but this does not imply to spend your entire credit limit. It is important to keep the credit card balances always below 50% of the total credit limit. If you make use of the entire credit limit on expenditures, it may reflect on your credit report. In addition, you will have a tough time to pay off your balances on time, if you get into the habit of spending your entire limit.

Irregularity in Monthly Installment:

This is one biggest mistake, which students do with these credit cards. They ignore their monthly installments or skip them. In such cases, credit firms either increase the APR (Annual Percentage Rate), or charge some penalty fees or withdraw all your rewards and exclusive rights. To worsen, they may even decrease your credit limit. Incurred dues are the common cause of debts due to these credit cards.

Solution:

To avoid these mistakes, do not just read the special features of these credit cards. Spend a little time in reading the terms and conditions found in the respective web site of credit card companies providing these types of credit cards. This way, you can come to know all the charges and interest rates accurately.

Ascertain those web sites that offer reviews on various credit cards for students. These web sites collect all college credit cards available in the market along with their exclusive features.

If you find difficulty in choosing a best student credit card, seek help of financial consultants, as they may give you an informed opinion about the best one available in the market.

Having a student credit card is the first and vital step to build a strong credit history for a student. You need to make an excellent good credit report, since this helps to make a good impression after graduating. Hence, remember your responsibilities and avoid making such common mistakes.

So, you’re on the Internet (obviously), and you’re looking for a college student card. That’s great! But, the only downfall here is that you don’t know where to start, because like anything, you’re new to the ballpark, and you need someone to hold your hand, and take an initiative. That’s okay, because I was there before, and I can understand where you’re coming from.

Thankfully, with some of my expertise, and your knowledge, I can show you exactly where to find the best student cards on the market today. Since the market changes all the time, and new cards come out every month, it seems like, let’s get a path to success, when it comes to your credit card.

Google is your friend: Yes, Google is everyone’s friend. Whether you want a recipe for chocolate chip cookies, or you want a college card, it can find it. Use simple terms to find what you’re looking for. Something such as “student credit cards” shall do. Try not to overdo is such as typing in “where can I find the best student credit cards in Milwaukee, Wisconsin?” This most likely won’t drive any good results.

I know you’re expecting a secret sauce, or the next big secret, but really, that’s it! The other thing that you can try to see if it works is to simply as friends at your college to see where they got their card, and if they like it. If you can accomplish these two, maybe you shouldn’t get a card?

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.