Finance Tips

College students can start building that all-important credit history with student credit cards. Next to a checking and savings account that offers a good amount of flexibility and low fees, a student credit card is one of the most important tools a young person can have starting out in life.

The fact is that in many cases no credit is worse than bad credit because like so many individuals, lending institutions are wary of the unknown. Even if one is able to secure well-paying, steady employment right out of college, banks will not write car loans or home mortgages without some kind of credit history – and student credit cards are an excellent way to get started.

There are some issues to keep in mind when applying for student credit cards One is the issue of no prior credit history; in order to successfully apply for student credit cards for the first time, it’s often necessary to have a co-signer with a strong credit history. Credit card companies do this in order to protect themselves; should the cardholder default for any reason, the co-signer becomes the party responsible for repaying the balance. For this reason, it’s an excellent idea to compare the terms offered by several different companies.

The other thing to keep in mind is that the interest rates on student credit cards are likely to be high, while the amount of the credit line is unlikely to exceed $1000. This is for the cardholder’s protection as well as the credit card company’s. By establishing a reliable payment record however, it should be possible to get much more favorable terms in a reasonably short period of time (typically a year or two).

In the meantime, used prudently, student credit cards can be valuable tools; many even offer rewards and incentives. The Discover® Student Card is one such instrument; cardholders earn unlimited cash rewards, including up to 20% rebates for online purchases.

The Bank of America Student VISA Platinum Plus Credit Card is one that requires no cosigner. There is no annual fee, and one can access his/her account online. In addition, this student credit card offers protection against fraud and identity theft – a real danger when shopping online if one does not exercise proper caution.

You may find that student credit cards such as these offer “0% Introductory APR.” Keep in mind that these rates are introductory; after the first six months, they can go as high as 16.99%. However, many student credit cards offer an interest-free “grace period” for balances paid in full every month – another incentive for using these cards in a prudent manner.

Those who are eligible for student credit cards are at least 18 years of age and are enrolled in a two-year college or four-year college or university.

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.

College goers may make the most of student credit cards, as they get an opportunity to build their credit history through them. Collegians need to understand well the functionality of such credit cards. These credit cards put you in a better position to manage your personal finances. If you do not know how to use such cards, you may attract bad debt to your name. It is advisable you, as a student, read the terms and conditions carefully, while applying for these types of credit cards.

Check expiry date for Annual Percentage Rates (APRs) as fixed by the credit card issuer. Collegians need to consider building their credit history as soon they join a college. It is important you have a good credit history for making important purchases. If the credit standing is bad, it may pose you a problem, while purchasing house and getting approved for loans. Further, you may even face problems, while finding a job for livelihood.

Hence, before you apply for student credit cards, develop the ability to manage finances tactfully.

Nature of Cards:

Credit card issuers market such cards for the betterment of students. The cards come in different styles. Often, the rate of APR is zero as an introductory offer to collegians. You may expect facilities such as cash back or score of ‘points’ to improve your credit over the use of such cards. It is necessary you read the contract carefully for knowing how far you can benefit by using credit cards.

The initial 0% APR on such credit cards is a limited period offer. Immediately after six months, the APR may inflate to around 17-18%. If your college budget is limited, then in the first six months, you may clear all the debts through such credit cards. They are a support to those, who do not have instant cash with them in times of need. Many a time, collegians are not able to do away with debts in life, and the debts go on increasing over period.

Academic needs are many. Collegians unavoidably have to spend on textbooks, cafeteria and dorm. Here if your income is low, you fall short of cash to address all those needs. Collegians may derive as many benefits from student credit cards by performing well in their academic years of studies. Such credit cards work as important identity proofs, if there is an employment or credit check.

The cards speak of your responsibility toward efficient handling of finances. They even prove beneficial, while applying for home or car loans. The key to handling such credit cards well is to have a grip over your expenses. Collegians may do this by avoiding frequent visits to clubs and making unnecessary purchases. By doing this, you stay away from potential debts and heavy APRs.

Student credit cards are the best for those aspiring collegians, who wish to make it big in the world of credit. Credit cards take care of all your financial worries provided you do not misuse or overuse them.

All it takes on the part of collegians is developing a sense of financial responsibility as for the proper use of credit cards. These cards offer the much-needed help, when it comes to making important purchases.

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?