Student Card Incentives

Filed under: Credit Tips for Parents, Credit Tips for Students

Student credit cards are designed for college students who are over the age of 18. It is a good idea for students to obtain a credit card so that they can get started building a credit rating. This way they will have already built substantial credit by the time they graduate. A good credit rating is important for things such as purchasing cars and renting and buying a home. Having a credit card helps pay for everyday grocery items and emergency bills that might arise. Credit card companies are eager to get students to sign up with them because students are expected to live for many years and can be potentially lucrative for the credit company.

It is important to pay off credit card bills on a regular basis without missing payments. Missed payments are not good for building up a solid credit rating and should be avoided at all costs. There are many cards to choose from and they all offer something for the student. The important thing to keep in mind is not so much what the cards offer but that a good credit score is being built up while using these cards responsibly.

Some student credit cards offer cash back rewards when purchases are made at certain shops or restaurants. There are even cards that offer incentives when students obtain good grades. These rewards are only offered when payments are made on time every month. There are cards that offer cash back rewards of up to 5% off the purchase price. Some student credit cards offer 0% financing for a set period of time. This rate then switches to a regular rate. It is a good idea to check how much the usual interest rate is before signing up with a card company. A variation of a few percent can make a big difference in interest charged on credit card balances.

Some cards allow the student to earn up to five points for every dollar when a purchase is made. These points accrue but are only good if regular payments are made on the card. Some cards feature 2% cash back on rotating categories every month. This means that different stores and restaurants are used every month to earn this money back. All other purchases stay at 1% with these cards.

Rewards are given for good grades and are used as another incentive. It is possible to earn 2,000 points every six months if a certain grade average is maintained. These points can quickly add up over the course of a college degree. Certain student cards give a 0% interest rate for the first seven months as long as payments are regularly kept up. Student cards are a good way for students to learn to use their credit card wisely. If payments are not met every month all the perks will be taken away until the regular payment commences. These cards should not be used to make large purchases or fund an education. It is best to use them for small items and everyday requirements. Students will find that when it comes time to get a Mortgage the way for a good credit score will already have been paved.

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Credit Card Debt and College Students Go Hand In Hand

Filed under: Credit Tips for Students

If you are a student, the school costs including tuition fees, transportation cost, book’s price, must be making a dent in your limited allowance. Besides that, the demands of a hot and happening social life like branded clothes, expensive outings and hangouts can also weighs on you pretty heavily. The inadequate allowance from your parents invariably fall short to cover these expenses and you are left with one last resort, yes you guessed it right credit card.  However, the freedom of using plastic and the delay in paying the bills make it easy to overspend on credit cards, especially for full-time students who have a limited income or no income at all. Soon this unwise spending habit leads them into huge credit card debts. If you don’t want to graduate with high credit card debts alongside your student loan debt, look for some other alternatives to get a debt relief. Read on to know more explicitly in this regard.

Credit Card Companies
Credit card companies have long targeted college and even some high school students and are well aware of this trend of college students to quickly build up high balances. In fact a New federal legislation came into effect in 2010 to restrict credit card companies from issuing cards to students under age 21 without an adult co-signer or proof of income. However for grown up students, financially independent students and those whose parents trust them enough to co-sign, credit cards are still a common source of overspending.

Reasons
The low introductory interest rates of credit cards often rise over time and make it harder to pay down the loan balance. Sometime, if the students default on their payments due to towering interest rates, the late penalty fees add up the total amount of money owed. Colleges and universities often arrange for financial counseling services for their students but students never pay any heed to such attempt and fail to learn about responsible spending.

Alternatives
College students can certainly evade this problem that come from credit card usage by looking for other ways to mitigate their educational and discretionary expenses. Students can take a part-time job which won’t hamper their studies in any way. You can earn a few extra bucks by working as a summer intern or local restaurant steward. If you want to make money online, you can work as a freelance writer or affiliate marketer as well. You must cut up your credit cards and start using checking account and debit card instead. Finally, you can use student loan funds, which are restricted by the lender, to pay for essential expenses like books, course fees, and accommodations. You can take help of student credit cards as well, which require a parent or guardian to serve as a co-signer, and generally offer low credit limits but it can help you to meet your immediate cash need and build your credit in the long run.
For students already in credit card debt, transferring the balance to a credit card with a lower interest rate or following Dave Ramsey’s snow ball strategy might help. You can consult a credit counselor for expert help and advise in this regard.

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Student Credit Cards – Great or Awful Idea?

Filed under: Credit Tips for Students

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Does a college student need a credit card? Better yet, should a college student apply for a credit card?

We all know that new credit card laws have made it more difficult for college students to obtain a student credit card. Now college students (and anyone that signs for them) need to think twice before getting that first credit.

There are many responsible credit card usage tips that college students can follow. On the flip side, there are also many college students that will fall victim to the credit card debt trap at an early age.

The question that I often receive in some shape or form is- should a college student have a credit card?

My answer is simple- all college students should have a credit card.

Before a mob of parents runs after me with blazing torches, allow me to explain myself.

Benefits of a Credit Card For College Students:

1. Build your credit rating.
When you make your first major purchase, whether it be a car or home, you will realize that one thing is very important- your credit score. This number makes a world of a difference. Before you do anything else you need to read about the importance of a credit rating.

The earlier you get a credit card the early you can build your credit rating. Yes I do realize the flip side here but please bare with me and continue reading for now.

Your credit rating becomes very important as you graduate from college and progress through your 20s. If you begin building up your credit at an early age you’ll notice some big wins.

2. Reap the benefits of a high credit score in your adult years.
A high credit score can save you a boatload of money over the period of a loan. A high credit score means that you have good credit. Good credit means that lenders feel it’s less of a risk to loan you money. Since it’s less risky to loan you money, you can receive a lower rate on major purchases when they happen, and believe me they will happen.

A lower rate may not seem like a big deal now, but trust me it will be one day. Unless you buy your first new car or first home with 100% cash, you’re likely going to have to apply for a loan. You don’t want to be in your 30s kicking yourself in the butt for messing up your credit or for having no credit.

3. Get used to a credit card.
Chances are very high that you’re going to have to deal with a credit card for the rest of your life. There are adults that refuse to possess a credit card or are vehemently against credit cards (see: Adam Baker or Matt Jabs), but it’s fairly rare to not have a credit card.

Cutting up your credit cards is too simple and it won’t solve the problem. You should get into the habit of using a credit card and paying it off monthly ASAP.

Okay now let’s go a bit further- what if you think the reasons for having a credit card are decent but you’re still not fully convinced on student credit cards? A college student should only have a credit card under the following conditions:

Student Credit Card Conditions:

1. It’s a student credit card with a minuscule limit.
A couple of hundred bucks to $500 max! Until you’ve mastered your financial situation completely you shouldn’t accept anything over $500. A high amount of credit available to you can be very beneficial, but it can also ruin you financially if you don’t control yourself. All college students should start off with the lowest limit possible and not increase it until income grows. On top of that, it’s also becoming more difficult for college students to get more than $500 worth of credit.

2. The student credit card is used for reoccurring monthly expenses.
I’ve automated my credit card to pay for my gym membership, cell phone bill, and a few online subscriptions (I swear it’s not porn!). A simple way to build your credit without buying useless junk is to automate reoccurring monthly expenses to your credit card. We all have monthly expenses. So why not simplify your financial situation and automate your monthly expenses with your credit card?

3. The credit card is only used in emergencies.
Yes I know that some will view an “emergency” as seeing a pair of jeans on sale at Banana Republic. This is where the $500 limit comes into play. Even if you lose control and splurge, you won’t go bankrupt because of it. You’ll probably have to suck it up and get an extra job to pay the credit card off, but you won’t destroy your finances.

A credit card is also extremely critical in real emergencies. Shit will happen in life. There will be times when you need money to pay your way out of trouble. Whether it be paying for a tow truck while stuck on the side of the road in the winter to having your flight delayed. Hopefully this sort of thing doesn’t happen to you. But if it does you can use your credit card and then pay it off with your emergency fund money when you get home

Article Source: http://www.articlesbase.com/credit-articles/student-credit-cards-great-or-awful-idea-2804505.html

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An Overview of Student Visa Cards

Filed under: Credit Tips for Students

You carry a full load just like your classmates. Unlike your classmates, however, you do not party the night away or sleep off the little migraines caused by exams. No matter how tired or weary you are, you have to trudge to a convenience store two blocks away, and clock in at least six hours of work. It doesn’t seem to matter how hard you work, though. You can still barely pay for school, and you are still saddled with student loans that only seem to balloon with every passing term.

Obviously, whoever said there are many more important things than money has never tried being a poor student, juggling work and classes and barely making ends meet. If you’re one, and you have to keep worrying about where money for emergencies will come from, why not get a student Visa credit card? Since their creation in 1950, credit cards have made purchasing and payment more convenient for the public. Student Visa credit cards give you the same power even if you’re a struggling student on a budget.

Introduction to Credit Before you get a student Visa credit card, you should know the basics about credit itself. You need good credit when you get loans for homes or vehicles, look for a job, or more importantly, apply for a credit card. Your credit record is like your shadow: it follows you wherever you go. Before getting a student Visa credit card, be sure to take these steps, to help ensure you can maintain a clean credit record.

1. Study the credit card agreement. There won’t be a quiz afterwards. Still, you should learn the key facts that are listed in the agreement. These include annual charges, finance charges, the grace period, and the APR, or annual percentage rate. It is advisable that you find a card with a lower APR, if you intend to maintain a balance on your credit card account.

2. Pay off your balance before the grace period ends. Do this to avoid finance charges. Think of the grace period as a loan for a month. If you pay off the loan within a month, you won’t be charged interest.

3. Memorize your credit limit. There is no excuse for not knowing your credit limit. If you exceed the credit limit and are unable to pay for it, you could face stiff penalties, fees, and the possibility of having your card frozen or your account canceled.

Choosing a Card for Credit University Choosing a student Visa credit card is like choosing a college course. You should first gather information and then determine which one is best for you. Here are some popular cards that you could choose from.

Bank of America Student Visa Platinum: Benefits include no annual fee and no co-signer required.

Chase Platinum Student Visa Card with Flexible Rewards: Benefits include no annual fee, and 0% introductory APR.

Citi Driver’s Edge Visa Card: Benefits include no annual fee; rebate on purchases at gas stations, grocery stores and drugstores; and 1% rebate on everything else you purchase.

Wells Fargo College Visa Card: Benefits include no annual fee, low APR percentages, 24-hour customer service, and extra cards at no charge.

A student Visa credit card is not just a safety net in case of emergency. It is also an opportunity to prepare for future financial independence.

About the Author:  David Shelton invites you to visit the Health And Nutrition Tips website to learn about fluid and electrolytes, freckle surgery and other information.

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Responsible Credit Card Use

Filed under: Credit Tips for Students

Applying for your first credit card?  Maybe you’ve had a credit card or two in the past, and didn’t use it responsibly, and it took forever to pay off, so you’ve held off using credit cards for a while? 

Whether it’s your first credit card or you’ve already got several, your attitude and spending habits determine whether you’re a responsible credit card user or whether you’ll get carried away and run up a bill that you’ll have a hard time paying off. 

One of the most important things to consider with credit cards is what you’ll use the card for – ideally, using the card for emergencies or major purchases only is best, but there are instances where using your credit card is advantageous to using cash, even when you have the cash.  An example would be that you have a credit card that offers extra warranty protection, above and beyond the manufacturer’s warranty.  In this case, using your credit card to make a purchase makes sense. (And there are many cards that do offer this extra warranty, so pay attention to the terms and conditions on your credit card!)

Secondly, track your purchases on the card.  Calculate in advance how long it will take you to pay off a major purchase, and what the interest will be, before you actually make the purchase. Just knowing what you’ll ultimately pay for something is a strong deterrent to impulse buying.

Third, if at all possible, pay the card off every month.  When you do this, you avoid interest charges, and it keeps your debt level low (and more manageable).

And, finally, make sure that you review the terms and conditions for both credit cards you are interested in applying for as well as your current credit cards, to make sure you’re getting the best interest rate, the lowest annual fee (or none at all), and what rewards you are entitled to.  If your card is not competitive, then consider switching to a different credit card that offers more.

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College Campuses and Credit Cards

Filed under: Credit Tips for Students

If you currently attend a college or university, you probably have noticed credit card companies that will attend your campus handing out free items such as t-shirts, mugs, etc. What makes these set-ups so popular is that most college students love free things and will sign up for just about anything for a free item they will never use.

What students don’t realize is that they are most likely signing up for their first credit card. When signing up for your first credit card, it’s important that you research what you’re getting yourself into. Even though a credit card requires no money to sign up, it can cause you a world of hurt in the future if you don’t use them properly.

Like any purchase you make in your life, it always involves comparison shopping. It shouldn’t make a difference with credit cards. Every credit card is unique in a way ranging from its interest rate to reward points. This is something you should really research before signing your name on the dot for a t-shirt that’s too large.

Now we’re not saying that the companies setting up these kiosks at your school are bad, in fact they are usually from major companies such as VISA and MasterCard. All of these companies are legit and offer great credit cards. The fact we are trying to push is that they may be pushing a card to you that you might not benefit from.

There are a lot of different types of student credit cards. Everything from gas rewards to cash rewards, they have something for you. It’s pointless nowadays to apply for a credit card that offers no rewards at all. The only time you may find that a credit card offers no rewards is if you’re applying for a bad credit credit card.

The best way to usually look for a credit card for you is to either do your research online or ask around. If your friends already have a credit card, ask them a few questions about it and ask them what it has to offer. You won’t get all the answers you’re looking for but you’ll get a decent idea. The best way besides asking around is browsing around on the internet. Many websites such as this one have a very informative website that tells you exactly what the card has to offer and what benefits you’re going to have when you receive your card in the mail.

The next time you see a tent at your school; don’t be afraid to stop by. In fact, it might be best to stop by and ask the people behind the booth a few questions. If you don’t like what you hear from them, walk away. It’s not going to hurt anything. If you really want that free item, you can get it in many other ways. It’s best that your first credit card is built for you. You shouldn’t let a free item influence your decision toward a credit card that may not benefit you.

About the Author:  Frederic Pittman invites you to visit his site about why do dogs shake and pancreatic cancer in dogs at the Caring For Dogs site.

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What Students Gain From Having a Credit Card

Filed under: Credit Tips for Students

If you are going off to college, no doubt you are beginning a new phase of your life. You are probably leaving home for a college campus and everything is going to be a bit different than before. More than likely you are going to have a lot more freedom; however, with that freedom, comes responsibility as well.

One of the most important things you need to learn early in life is how to take care of your finances and be responsible with your money, and a student credit card may be just the thing to help. There are many credit companies that offer student credit cards to students, and there are a variety of great benefits to obtaining one of these credit cards for students.

  1. You Can Start to Establish Your Credit – One of the best benefits to obtaining a student credit card is that you have the ability to begin establishing your credit while you are in college. Believe it or not, your credit is extremely important in life; in fact, it can influence the job you get, getting a home, or even getting an apartment. So, establishing good credit is a great idea, and getting a credit card for students is a great way to get started on the way to great credit. However, you will need to make sure that you never go over the credit limit and you will always need to pay the bill on time to ensure that you build a good credit history.
  2. You’ll Learn About Being Responsible – Keeping track of a credit card takes responsibility, and having a student credit card can help to teach you how to be financially responsible. You will need to learn about keeping up with the bills, paying on time, and even budgeting the amount of money you need each month to pay the credit card bill. Learning to be financially responsible now can keep you from bad financial problems in the future.
  3. You Will Learn to Keep a Budget – If you want to keep your finances in order throughout your life, it is important that you start learning now to keep a budget. Having a student credit card will help you learn how to keep a budget now, while you are young. Then, once you get out of college and you step out into the real world, you’ll be ready for all the financial responsibilities that will come your way, since you’ll already know how to keep a good budget.
  4. You’ll Have a Credit Card in Case of an Emergency – At some point in your college life, there is a chance that you may have some type of an emergency when you need money. Having a student credit card is a great idea, since you will have the security of having it if an emergency does occur. However, a student credit card should be saved for emergencies and not used just for frivolous purchases that you really cannot afford.

As you can see, there are a variety of great benefits to obtaining a student credit card. There are many credit cards for students available and they are fairly easy to obtain. So, considering getting one of these cards, so you can work on building your financial future in a positive way.

About the Author:  Lindsay Blanchard.  Visit the Health And Nutrition Tips website to learn about feeling numb, increase melanin and other information.
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College Students’ Guide to Finances

Filed under: Credit Tips for Students

If you are a college student, you are probably concentrating on your studies and trying to get an education that will benefit you in the future. One thing that you may not be thinking about is how to handle your money, and failing to do so can leave you in a pretty big financial mess by the time you are out of college. It is important that you take control of your finances now if you want your financial future to be bright. The following are some tips that can help you with your finances to avoid any college financial disasters. Tip #1 – Only Use Credit Cards in Emergencies – Once you get a credit card it can be all to easy to start racking up the credit card debt. This is a bad way to start out and you will probably end up with bad credit if you are using credit cards all of the time. Remember, the money you spend on credit cards will need to be repaid. It is best if you save your credit card for emergencies instead of buying that new pair of shoes or paying for an evening out. Tip #2 – Pay Off the Balance Every Month – It is also important that you pay off your balance each month if you have a credit card. Leaving a balance on the card can result in you paying extra money on interest, so you will save money if you pay off the balance every month. This will also keep you from getting in credit card debt over your head as well. Tip #3 – Pay Bills on Time – Now is the time to start building your credit history, and you can do this by always paying your bills on time. If you fail to pay your bills on time, it can get quite expensive. Many companies will charge late fees if you do not pay on time and your interest rates may go up as well, costing you even more money for being late. Tip #4 – Start Saving Now – Many college students do not realize how important saving really is, but if you can start saving while you are in college, you can reap from great benefits when you are older. Saving now will get you in the habit of saving, you will earn money from the money you save, and you will have extra money set aside in case of any emergencies as well. Tip #5 – Look for the Best Checking Account – You can actually save a great deal of money if you look around and find the best checking account. Look for an account that has no fee for starting an account and no minimum balance. You may also want to check into any debit card fees, and fees for deposits of withdrawals. Some banks will actually offer totally free checking for college students, so take advantage of this and you can save a great deal of money every year.

About the Author:  Perry Clements.  Want to find out about breastfeeding engorgement and breastfeeding foods to avoid? Get tips from the Breastfeeding Problem website.
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Credit Cards for College Students – Finding the Best Offered

Filed under: Credit Tips for Students

Student credit cards are geared primarily toward college  students. But there are many factors that can make credit cards for college students the right choice for young people. So, it is very important for all consumers, not just students, to first learn about each type of available card and then choose the one that is most suitable.

Secured credit cards are one type of card for students to consider. These cards are funded in advance of purchases and do not actually extend a line of credit in the form of a loan.  Rather, the cardholder sends money to the card ahead of time and uses those funds to make purchases later. In essence, a secured credit card is a bank account that does not earn interest, but can be accessed easily with the swipe of a credit card. 

Secured credit cards for college students are a popular choice with many students and their parents. One of the reasons for the popularity of these student credit cards is the fact that it is not necessary to have a credit history in order to receive the card. Of course, most college students have not yet had the opportunity to build a credit history. Therefore, a secured credit card is an attractive option. In addition, secured student credit cards typically offer instant approval and do not require employment verification or even a bank account in order
to receive a card.

Secured credit cards are also popular with parents because they can “load” the credit cards with as much money as they see fit for their college student. Loading a credit card is simply placing money on the card. Parents can generally choose to have money directly added to the card with each paycheck. Or, they can send money through the mail in the form of a money order or cashier’s check. There usually are also banks that will accept payments to be added to the credit card.

With a secured student credit card, parents can essentially provide their college-going child with an allowance to pay for food, school materials, or any other need the student may have.  At the same time, there is no risk of the college student building a huge debt on an unsecured credit card. Once the money is spent, there is no more for the college student to spend.  Secured credit cards for college students are a great way for parents to help teach their children to be responsible and independent while still providing a little help along the way.

Another benefit to using secured credit cards for college students is that many report to the major credit bureaus. In this way, the college student can begin building credit without the concern of harming his or her credit rating by being unable to pay the debt off.

For some college students, secured credit cards are not the most attractive option. One reason is because there tends to be a great number of fees associated with secured credit card.  These fees include application fees, processing fees, and annual fees.  There is generally also a fee associated with loading funds onto the credit card. Though these fees usually range from $1 to $5, the fees can add up over time.

Another reason secured credit cards may not be attractive to a college student is because the student is truly on his or her own and unable to receive financial assistance from the parents.  Or, the college student may simply not have the funds available to place on a secured credit card ahead of time.

No matter the reason, unsecured student credit cards are also a popular option with credit cards. Credit cards geared toward college students are specifically designed for individuals with little credit history. Often, the Annual Percentage Rate (APR) on these cards is higher than average. Therefore, it is best for the college student to pay off the card at the end of each billing cycle whenever possible. As with secured student credit cards, unsecured credit cards for college students go a long way toward building the student’s credit history.

About the author:  Brian Tucker
Find tips about text bullying and emotional bullying at the Types Of Bullying website.

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Credit Tips for College Students

Filed under: Credit Tips for Students

The length of one’s credit history is one of the various factors credit bureaus look at when formulating a credit score.

Therefore, it may seem like a good idea to apply for credit early and often. A recent report by CBS MoneyWatch offered insight into how college students can do this, and also debunked some of the myths they apply to money management. The first is that credit cards are the only way to build credit.

Auto loans, student loans and some personal loans will also contribute to an individual’s credit report. Like credit cards, it is important to make payments on these on time. Falling behind is not only damaging to a credit report; it can also lead to elevated balances and interest.

While many may enjoy the freedom associated with college, some students will need assistance from mom and dad in order to obtain a credit card account, according to the report. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 now limits availability of such products to those under age 21. Younger adults need a co-signer or evidence of income or assets in order to open an account.

Students who do not have these options may be able to join their parents’ card as a joint account holder, according to the report. Doing this can help them build up the credit needed to qualify for future loans, but can also put parents’ strong credit histories at risk.

Those looking for their first card should consider looking beyond the big name banks, according to the report.

“While large banks may boast great deals and rates, as a young adult opening up a credit card for the first time, you may want to scour the offers from your local credit union first,” the report said. “Credit unions generally offer the lowest annual percentage rates (APRs) on credit cards.”

These low rates can keep credit card payments affordable, further protecting consumers from falling behind on payments.

Young consumers should also understand how other payment options may impact their credit score. Store credit cards often come with initial discounts and alert services, but may carry low limits that can be restrictive to a debt utilization ratio. While debit cards are a useful way to keep one’s spending within their means, maintaining a strong balance on such accounts will not positively impact a credit score.

The Author, Krystle Chelsea Chan, is the SEO Specialist at www.creditreport.com We are authorized to provide consumers with access to their credit report at the three national credit bureaus: Equifax, Experian and TransUnion, and we do so 24 hours a day, every day of the year.

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