1. Choose the right credit card for you. if you are under 21 years old, you can apply for a student credit card with help from a co-signer. Nevertheless, if you can show proof that you have an independent source of income, you can qualify for a student credit card even without someone else co-signing for you.

When choosing a credit card, make sure that you understand the Terms and Conditions of your issuer. Keep in mind that there is not one credit card that will fit everyone’s needs. Therefore, you have to evaluate your personal needs and find a credit card that will complement your lifestyle.

A low interest credit card is best as it can protect you from the risk of debt build-up in case you may need to occasionally carry a balance. Nevertheless, remember that the surest way to build good credit history is to use your card only on important expenses and to pay off your full balance each month.

1. Use your credit card regularly. Just putting your student credit cards in your wallet will not do you much good either. In order to build credit, you need to prove that you can handle debts and repayment. Therefore, use your card on an important purchase but keep your charges minimal.

Before charging anything to you card, consider carefully if you can afford to pay it back on time. If you have doubts, use it only for a small purchase and pay it with your cash, the same day you made the purchase.

1. Always be on time. One of the most important things that students must learn about handling debt and finances is being on time. Keep in mind that frequent late payments can lower your FICO score by as much as 35%.

If you are having trouble remembering your due dates, it may be best for you to arrange automatic payments with your bank. This way, late payments can be prevented. Paying on time not only protects your credit history, it can also save you from additional credit card fees like late penalty and interest rates.

4, Do not apply for too many cards. While you’re still in college, it is not advisable to get more credit cards for students than you can handle. In fact, one credit card should be enough to build good credit history. Even though other Issuers may send you varying credit card offers, you need to be strong enough to ignore them. If you have taken out one or two student loans, how you manage your repayment with these loans will also help you build an excellent credit standing.

For job seekers, it can make the difference between getting hired or not. Although an employer cannot refuse an applicant based on his/her credit standing alone, it can be a major factor that will give you the edge among your candidates vying for the same position.

This is why students in college are encouraged to start building credit history by getting a student credit card. As soon as you have your first credit card, what are the steps that you can do to ensure that you will be building up good credit history? Check out the following advice:

Check your credit report. It is not uncommon for reports to contain errors or for a mix-up to happen. Someone else’s credit information may damage your personal credit either because of erroneous reporting or because an Identity Thief has been making illegal transactions under the pretence of your identity.

Consumers are entitled to a free credit report once a year from AnnualCreditReport.com. Make sure that you do take a look at your report at least once every 6 months to make sure that it contains accurate information.

Understand how credit scoring works. Understanding how your credit score is calculated can help you become more conscious on taking care of your credit standing. You need to keep in mind that payment history or timeliness of payment comprises 35% of your final score. Hence, even a few late payments on your part can really pull down your rating.

Another important factor is how you use your credit limit. Maximizing your borrowing limit, particularly on your credit card account can send out a negative impression to lenders and insurers. Thus, if you must use your student credit cards for a purchase, keep it minimal (ideally, below 40% of your limit) and try to pay off your full balance before the payment due date.

Some people have the misconception that maintaining a balance on a credit card can help in having up a high credit score. On the contrary, doing so only increases your risk of having bad credit. What’s really more important is paying off your debts completely and on time.

Understand your credit card’s Terms and Conditions. You need to familiarize yourself with the rates and all fees associated with your chosen credit card for students. Have you taken the time to carefully read the fine print before signing up your application? Even if you’ve had that credit card for quite some time, it is still recommended that you review the Terms and Conditions to avoid unpleasant surprises in your bill.

Check your monthly credit card statements. Before making your payments, cardholders are advised to carefully examine their bills to make sure that there are no errors or unauthorized charges in their account. If you find unfamiliar charges, call up your bank or credit card issuer and ask for corrections. Remember that you have the right to dispute errors as stated in the Fair Credit Reporting Act.

College students have a number of choices to build credit. Check out the following ways and choose one that suits your individual needs:

Student Credit Cards. Credit card companies offer quick approval to college students. As a matter of fact, issuers even send out flyers at campuses to entice teenagers to apply. Nevertheless, under the New Credit Card Law, such advertising campaigns will not be permitted within 1,000 feet at college campuses.

The New Law also prohibits students who are under the age of 21 from acquiring their first credit card unless they have a co-signer or they can present proof of independent income. If you are below 21 years old, you need a parent or a guardian with good credit history to co-sign your account.

Before applying for credit cards for students, diligently compare your options. Evaluate the rates and fees, along with the Terms of using the card. Begin with one student credit card to avoid overspending and bad debt.

Secured Credit Cards. A secured credit card is an alternative for teenagers who can’t find a co-signer. Anyone can get a secured card even with no credit or bad credit history. Nevertheless, secured cards involve a cash deposit that may range from $200 to $500 or more. The amount of deposit you give will likely determine your borrowing limit.

Prepaid Debit Cards. These days, you’ll find prepaid debit cards that offer credit reporting to the three major credit agencies. Yes, debit cards can now be used for building or establishing credit history.

A prepaid debit card involves cash deposit as well. But as opposed to a credit card, debit cardholders are not extended a credit line. Purchases can be made as long as there is available balance in your account. When the last dollar have been spent, the debit card holder must make a new deposit or to continue using the card for payment.

Even though a prepaid debit card frees you against rates and late penalties, there are other fees that you need to know about. Take note that some debit cards have more fees than a credit card. For instance, fees that you should look out for are application fees, maintenance fees (monthly and yearly), per transaction charges, etc.

Department Store Cards or Gas Credit Cards. You may also obtain a department store card or a gas card. All you have to do is sign up a form and pay the processing fee to be issued the card. You do not need to submit a deposit to start using your card.

Then again, these credit cards can only be used for charges made from the department store or gasoline company that issued your card. Furthermore, you are required to pay your full balance at the end of each month to prevent deactivation of your debit account.

If you are presently stuck with credit card debt, don’t panic. Consider the following strategies to eliminate your debts one step at a time.

1. Take charge. Even if your credit card debt seems insurmountable, it’s never too late to recover. Take positive action right now and build up your motivation.

2. Know your debts. Before trying to figure out a solution, you need to be aware about the exact status of your debts. Review your billing statements. Order a copy of your credit report so you can check all the accounts you have.

Make sure that there are no unfamiliar charges in each of your accounts. If there are errors, call your Issuer right away to correct the matter. If your creditor refuses to act upon your complaint, send a dispute letter to the credit bureau that issued your report. An investigation will take place within 30 days. Afterwards, you will be notified about the result of the investigation along with an updated copy of your report.

3. Create a doable repayment plan. It is important to create a written plan that you can use as a guide towards debt recovery. Do your best to follow the plan no matter how difficult or inconvenient it may seem.

4. Transfer high rate debt. One way to ease your burden is to get a credit card for students with a low or zero balance transfer rate. Transfer all your outstanding balances from your high rate card. This way, you can pay off your debts without the additional interest rate charge.

Choose a zero rate balance transfer credit card with a sufficient introductory period and reasonable fees. Remember, you’ll need to complete your payments while the zero interest is still applicable. Carefully read the fine print to make sure that the Terms and Conditions are fair.

5. Stop spending. You will surely have a difficult time paying off your debts if you continue using your credit cards for students on new purchases. This is not the time to splurge. If you need to use your card to keep your account from closing out, use it only for a small purchase and pay it back the same day you made the purchase.

6. Cut costs. Find ways to cut back on your monthly bills and personal expenses. For instance, you may consider giving up some subscriptions or switch to a lower plan of cable, internet, etc. Every cent you save, you can put aside to pay off your debts.

7. Seek professional help. Don’t be afraid to seek help from a trusted credit counselling agency. A credit counsellor should be able to give you advice on how to manage your finances more effectively.

Most parents are hesitant to provide or allow their teens to have their own credit cards. They are afraid that this freedom will just lead to a more serious problem – bad debt. However, it is important to note that allowing our children to have a first-hand experience on managing finances is better that just telling them about it.

Importance of Having A Student Credit Card

Getting a student credit card for your teens is a great start for them to build their own credit while in high school or college. Remember, credit history is important when applying for a job or loan. Good credit can impress a potential lender or employer. At young age, teens can learn basic finance skills that they can use in the future.

A credit card is convenient for college students since they won’t have to ask for cash from their parents each time they need to pay for something or buy materials for their projects.

College students who are working during summer breaks, on the other hand, can use their student credit cards to pay their tuition fees or purchase items. They simply charge it to their credit cards and pay them off with their own earnings from their part time jobs.

Tips On How To Teach Your Child About Credit

1. Be sure to keep the credit limit to $250 0r $500. Students with part-time jobs might ask you to let them for a higher credit limit since they are already working but make them understand that they should just stick to that credit limit to avoid spending too much on purchases.
2. Make your child understand that they can use the card for personal expenses but they must pay these bills from their own allowances.
3. Teach them the importance of budgeting and expense tracking.
4. Set rules on how they should use their student credit cards. Make them understand the difference between what they need and what they want.
5. Explain how a student credit card works – its fees, interest, grace period, etc.
6. Let them know the importance of paying off their credit card balance on time.

How To Find The Best Student Credit Card For Your Teens

• Check if the student credit card has no annual fee.
• Find a credit card for students that has 0% Intro period.
• Check if it offers rewards programs that are just right for your children.

It is important to let your children understand the dangers of having too much credit. Some of the most common results of being incorrect credit card use are, debt accumulation, bad credit history and debt problems.

If you are planning to apply for a student credit card, this is the best time to do so. Students have a few months left to get credit cards before the New Laws take effect on February 22, 2010. Although a student can still apply for a credit card, it would be more difficult for them especially if they are just 18 to 21 years old. The New Credit Card Law prohibits credit card companies to market on campuses or 1000 feet within any campus or school sponsored.

The following are 3 easy steps on how to apply for a student credit card:

Shop and Compare. There are some credit card companies setting up tables and booths at college fairs. This is a great opportunity for you to shop for possible options. You can also search the web. Most credit card companies offer online applications. This makes the application process easier and faster. . Look for a student credit card with lower interest rates and fees.

Choose the Best. Never grab the first offer that you encounter. It is best to seek your parents’ opinion regarding which is best for you. Not every credit card is the same. Some will offer lower interest rates, others will have better terms.

Check which one offers low interest rates and longer grace period (this is the amount of time you have to submit your payment before incurring the interest rate fee . It is also important to choose a credit card with no annual fee and lower fees (i.e. late payment fees etc.)

Apply. This part is simple. Once you are decided, just fill out the application- it can either be on paper or online. Most companies will ask for the following information:

• Full name of the Applicant
• Applicant’s Permanent Address and Phone Number
• Your Birth Date
• Applicant’s School, School’s Address
• Your Enrollment Status
• Your Year of Graduation
• Maiden Name of the Applicant’s Mother

The reason why your mother’s maiden name is asked is because this detail is used by the company to verify your identity.

There are also instances wherein you will be asked about information regarding your bank accounts and employment (if applicable). If you are currently employed or you have existing savings accounts in the bank, there is a possibility that you will be given a higher line of credit. This is also possible for students with summer jobs.

Keep in mind that a student credit card is one way to show how responsible you are in managing your finances and spending. Always submit your payments on time. Student credit cards are great tools to build your credit history, as long as you can keep up with your payments.

Although having a  credit card for students can be advantageous for building early credit history, teenagers must be very careful about how they spend with their cards. The modifications made to the Credit Card Law such as not being qualified unless you have a co-signer or proof of independent income are supposed to reduce the number of bad credit cases amongst college students.

If you’re a student who has a credit card, what can you do to prevent bad debt and the effects it can bring? Check out these tips:

Avoid carrying a balance. To avoid debt build up and maintain good credit rating, completely pay off your balance. Don’t be happy with just making the minimum due payment. It can save you a great deal by not paying the rate and additional fees.

Be discreet. Whenever you can buy in cash, do not charge it to your credit card. Even if you have a credit card with you, you should avoid using for your day to day purchases. Remember that everything your charge to your card might incur extra costs (APR, late fees, etc.) if you fail to pay it back on time.

Don’t borrow cash. Although your student credit card enables you to borrow cash advances, avoid using this feature. Such transactions are not covered by the grace period which means you automatically incur the cash advance interest rates the second you withdraw the cash.

Say no to tricky offers. Young people tend to be vulnerable to making quick choices. Do not ever sign up for a new card simply because the marketing package seems attractive. Credit card issuers frequently promote teaser rates or giveaways to entice new cardholders. If you currently have a student credit card, you should shun from other offers.

Do your homework. If you’re still shopping for your first credit card, don’t be hasty. Shop around and do comparisons. Keep in mind that it’s not just about finding a low rate. You’ll also need to make sure that there will be no hidden fees or unreasonable charges. Spend time studying the fine print regardless of how lengthy it is.

Speak up. Do you notice a change in your rate? Or did you incur additional fees in your bill? Do not be reluctant to speak up. Contact your credit card company and ask for a lower rate. If you have been a great customer, your Issuer would most probably give in to your request. Even if your Issuer refuses, iIt is still worth try.

If it’s not important, don’t charge it to your card. Be sensible in managing credit cards. Understand the distinction between your needs and wants. If it’s something that you might want but you don’t actually need, never charge it to your credit card. If you would like to buy something as a reward for yourself, save up and buy it in cash.

In this post, let’s discuss pointers that you should consider before signing up for your first credit card:

Go with a low rate card. Interest rates on credit cards for students range from 15% to 35%. It’s best to find a low APR card for times when you need to carry over a balance. Watch out for cards with incredibly low variable rate as these are subject to change depending on the Prime Rate.

Is there an annual fee? Annual fees can cost you anywhere from $30 to $50 or more each year, depending on the card. Your best choice is a student credit card with a reasonable APR and no annual fee.

Start with a low limit. It is a good idea to start with a low credit line to help you exercise control over your spending. Since you do not have permanent employment yet, you can greatly reduce the risk of bad credit by watching your credit card usage.

Credit reporting. Make sure that your chosen college credit card comes with credit reporting. Take note that some Issuers may not report payments to the three major credit bureaus. This is a crucial provision that you should look for when applying for a credit card.

Fraud liability protection. Choose a credit card that comes with a $0 fraud liability guarantee. This guarantee will protect you in case of unauthorized charges in your account. With this in mind, carefully your monthly billing statements before submitting payment to make sure that you’re not paying charges that are not yours.

What about rewards? A student reward credit card can be a great option if the type of reward matches with your lifestyle. However, student credit cards with rewards usually require good credit so you need to have established credit history in order to get one.

Furthermore, you may find that the interest rate and the fees are higher than a non-rewards credit card. If you decide to apply for a rewards student credit card, do your best to avoid the interest rate and late penalty costs by submitting full payment on time at all times.

Read the fine print. Before submitting your application, carefully read the fine print to make sure that there are no hidden fees or unfair terms associated with your student credit card.

However, the New Credit Card Law has made a few restrictions for young people who want to own a credit card. Today, a student can only qualify with a co-signer or if he/she can show proof of independent income.

The amendment to the credit card law was meant to cut down the number of bankruptcy and bad credit cases, particularly among students. With a parent or an adult as a co-signer, a teenager can have someone to guide them in managing a credit card account.

In this post, let’s talk about the steps that you can do to build up good credit history using your student credit card:

Choose wisely. Don’t get a credit card for the wrong reasons. Do not rush into signing up just because a card offers a promotional giveaway item or a low introductory rate. Always weigh your options, check out all the fees involved, and understand the terms of the Issuer. Ask your parent or someone with good credit history to help you out when doing comparisons.

Stick with one card. One student credit card should be enough for building credit history. Since your main priority is your studies and you do not have a permanent job yet, it’s only practical to stick with one credit card to handle.

Charge only what you can afford. If you’re going to charge a bill to your card, make sure that you can pay it in full on time. If you have any doubts, don’t charge it to your card. Remember, a $25 purchase can easily balloon to $50 because of the additional interest rate and late penalty charges.

Always pay the full balance. To avoid the interest rate and extra fees, cardholder must pay the full balance each month. Although you can submit only the minimum due payment, such a habit can be risky. The longer you prolong your balance, the bigger your debts become.

Do not submit multiple applications. Some students try out their luck by submitting multiple applications to different Issuers. Others sign up with no intention of getting the card just for a free mug or tee shirt. Watch out! You could end up with more credit cards than you can handle. Even worse, too many inquiries in your credit report can affect your rating.

Ask advice. As a new credit card owner, you should seek advice from your parents or from a family member who has more experience in handling credit. If you got your first credit card through the help of a co-signer, keep in mind that your co-signer’s credit history and your own credit history are both on the line. Be responsible in using your credit card.

As a student, how can you use your credit card for building good credit history? Check out these top ten tips for you:

Charge ONLY if you can pay it back in cash. To be on the safe side, you need to consider repayment before charging anything to your card. Will you be able to pay back that purchase on time? Do you or will you have the cash to make full payment on or before the due date? If you have doubts, the wise thing to do is to skip the purchase and wait until you have the means to do so.

Know your limit. Credit cardholders are prone to exceeding their credit limit. Nevertheless, there’s a very good reason why you should stay within your limit. For one, you can avoid the overdraft fees. Two, you can maintain a better credit standing and avoid the risk of uncontrolled debt.

Choose a no annual fee card. When choosing a college credit card, better choose one that carries no annual fee. Annual fees can range anywhere from $20 to $50. There are reward credit cards with annual fees ranging from $50 to as much $100. As a student, you should get a credit card with a reasonable interest rate and minimal fees.

Pay on time. Paying on time can save you $15 to $30, depending on the student credit card you have. Aside from avoiding the penalty fees, being a prompt payer can significantly raise your FICO score by up to $35%.

Check your statement of account regularly. Check your monthly billing statement and check your account regularly especially if you have an online access. If you notice unfamiliar charges, contact your credit card Issuer right away. Consumers have the right to dispute incorrect or unauthorized charges and you should exercise this right if you need to.

Don’t use your card for borrowing cash. There are student credit cards that allow you to borrow a cash advance through the ATM. Still, you should be aware that cash advance transactions are not covered by the grace period so you instantly incur the interest rate the moment you make the withdrawal. For most cards, the APR on cash advances are often higher than the interest rate applied on balance transfers or purchases.