Students Get Gifts For Credit Cards
Nowadays, many credit companies set up tables in the common areas of college
campuses to coax students to get student credit cards. They go to the extremes
of offering trinkets like T-shirts, Frisbees, coffee mugs and water bottles in
exchange of students filling student card applications. It is presently
estimated that students have a current disposable income of $80 billion and
that practically one in every three high school seniors owns a student credit
card! It is no wonder that credit card issuers are now interested in students!
Student Credit Cards Lesson Student's Tension
Students having credit cards can find the handling of their expenses quite
easy. They can get funds quickly through credit cards, which can be used for
emergencies. There is no tension for students of carrying much cash around; as
all their purchases can be made through credit cards. The credit cards with
specific limits are the best form of cards for students as then; the students
won’t spend more than that specified limit. The statements that the credit card
company issues helps in the student’s finances as it provides a record of all
the expenses of the student.
Use Your Student Credit Card Wisely
It is best to shop around for credit card terms, before buying a credit card,
to find out which card is best suited for the student. There are some credit
card companies which charge very high interest rates, while others which charge
reasonable rates. Make sure that the terms of the credit card are well
understood before accepting the card. One of the main things about student
credit cards that students should remember is, to pay as much of the bill as
they can afford every month, if the full amount of the bill cannot be paid. If
only the interest is paid, the student will then have trouble settling the
bills at the end. It should be remembered that a single national credit card is
all that is needed to build a credit record, which will be needed by the
student later for bigger purchases!
Teens Using Student Credit Cards Get Better Jobs
Nowadays, employers are more often using credit card scores when evaluating job
candidates. So students who maintain a good credit record are more viable of
landing in good jobs! Having student credit cards also makes the student
qualify for car loans and mortgages. Students also find it easier to rent an
apartment through credit cards. Auto and homeowner insurance companies charge
lower premium rates to students who have student credit cards. And it should
also be remembered that such students also qualify for favorable interest rates
on all types of loans. So if the teen is responsible, there is no harm in
giving a student credit card with a low credit limit as long as the parents are
monitoring the teen’s spending and payments monthly!
Student Credit Cards
Student credit cards were created because students don't often have the income
required to be approved for a regular credit card. Yet students need to build
credit and often have expenses that they can pay for over time but can’t afford
all at once. Financial companies are aware of this, which is why they offer
student credit cards. These require proof of being enrolled in college (the
type of college requirements depend on the of the specific student credit card
offer, but often it’s a 4 year accredited university) along with the basic
credit card application information of name, date of birth, social security
number, etc.
Picking a Student Credit Card
Usually when a student arrives at the college campus at the beginning of the
school year they will be bombarded with student credit card offers. So finding
a student credit card will not be hard. The hard part is choosing one wisely.
You don't want to pick just by what the credit card company is giving away free
(could be a t-shirt, Frisbee, pizza, movie tickets) you want to choose by the
terms of the credit card. You want one with no annual fee, a low APR (interest
rate), and security features like $0 liability on unauthorized purchases. Most
will offer a low or even 0% introductory APR but introductory means temporary.
Find out how long the introductory period is and then what will the APR be
after that. If possible you also want a fixed APR because a variable one will
mean your interest rate will change regularly which is difficult to keep track
of.
Credit Card Responsibility
Student credit cards are just like any other credit card. You have a monthly
bill, interest accumulating on your balance (balance is what you owe in total),
and penalties for paying late and / or going over your credit limit. The best
way to use a credit card and to build good credit is to use it when needed or
on small purchases periodically, and then pay them off in full every month. If
you can't do that still try to pay more than the monthly minimum so you will
pay less interest over time.