Applying for a credit card today is a lot simpler. Most issuers offer an online application feature so all you need to do is fill out an online application, click submit , and get a response to your application within minutes. However, students should be cautious when filling credit card applications. Here are pointers that you should consider before signing up for a student credit card.

Pointers to Consider when Signing up for your First Credit Card

Are you old enough to apply on your own? There are student credit cards that do not require a co-signer but there are some who does especially for those below 18 years old. If you need a co-signer, the best person to ask is your parent or guardian.

Do you really understand the Terms and Conditions? The best rates and low fees that are advertised may be subjected to certain conditions. Take time in reading the fine print to make sure that you are in agreement with the credit card company’s conditions.

When should you use your student credit card? Getting approved for a student credit card is fairly easy. IT is managing your credit card account that is the more challenging part. Unfortunately, some youngsters weren’t able to exercise control over their credit card use. This often resulted to bad credit or bad debt. As a college credit cardholder, you should be aware of your responsibilities to your issuer especially with regards to repayment.

Are you ready to be a credit card holder? Another thing to consider is how you plan to pay off your credit card charges. Will your parents help you with the payment or will you be entirely on your own in paying off your charges? Before charging any purchase or bill to your account, consider your plan of repayment.

Are you aware of how your credit card use affects your credit history? Students are encouraged to apply for a student credit card to build a solid credit history. But this can only happen if you can use your card responsibility. Delays in payments, exceeding your credit limit, paying only the minimum required due- these are all habits that can have a negative effect in your credit history. So before you go and use that card, consider how it will affect your personal credit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Most Important Factors When Choosing the best Credit card for Students

Interest Rates and Fees

The APR is the additional cost that a cardholder pays each time he/she carries a balance for the next month. Needless to say, you’ll be better off with a low interest rate credit card. As a cardholder, do your best to pay off your monthly balances in full to avoid the APR.

However, there may be instances when you can’t pay off your whole credit card balance. This is why, a student credit card with a low APR is a smart choice. But take note that the interest rate isn’t the only thing you should be concerned about. Aside from a reasonable interest rate, you should make sure that the rest of the fees are just as reasonable.

Looking at the ads will not tell you everything you need to know about a credit card. To learn about the real interest rate, how the APR is calculated, and the other fees associated with your student credit card, you should read each and every statement in the contract.

Grace Period

The grace period is the length of time that the cardholder is allowed to pay back the charges without incurring the additional interest rate cost or APR. Most credit cards for students allow a 25-day to 30-day grace period.

It is crucial to get a student credit card with a sufficient grace period to protect yourself from the risk of bad credit. Bear in mind that not all credit cards for students provide ample grace period so it is up to you to find a credit card that does.

Low Credit Limit

A student credit card usually has a low credit limit, to the dismay of many young people. But in fact, having a low credit limit is a good way to start learning about correct credit card use. Although a credit card with a higher credit limit gives you more freedom to spend more, it also puts you at a greater risk of falling in the debt trap.

First time cardholders like students are recommended to get a credit with a lower credit line. Use your credit limit wisely and charge only important expenses to your student credit card. More importantly, see to it that you will able to pay back your charges on time to avoid bad credit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Students and Secured Credit Cards

Secured credit cards on the other hand are designed for people with bad credit history or no credit history. Thus, even with the absence of credit history or despite suffering from a low credit score, a person can still acquire a secured credit card. Secured credit cards can be used to improve bad credit history.

What makes secured credit cards different from regular credit cards? Unlike standard cards secured cards require its holder to submit in advance a security deposit which amounts to at least 100% to 200% of the cardholder’s desired credit limit. Let’s say for instance that you need a minimum credit limit of $500, then that means you need to submit at least $500 security deposit to your account to enjoy your desired credit limit.

Parents who want to give their college kids with a credit card account may also consider providing them with a secured credit card. This way, a parent can exercise control or put a limit to the student’s spending. Such a limit can protect a credit card holder from the risk of uncontrolled spending which may lead to bad debt.

Giving a student a credit can be a good training ground when it comes to handling finances. Needless to say, young people still needs support and advice from parents or responsible adults. If you are a parent, you can make a big difference in helping a student stay away from debt problems.

Both secured credit cards and student credit cards are used for establishing credit history. IT is important however to choose a card that will report your payments to the major credit bureaus. Take note that despite the claims to be a secured credit card or a student credit card, there are credit card issuers who do not offer the credit reporting feature.

Remember that the only way you can build your personal credit history is if your creditor reports your payments to consumer credit reporting agencies. Last but not the least, you can only build good credit history if you use your credit card the smart away and avoid unpaid charges. Timely submission of payment is crucial in maintaining an impressive personal credit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Student Credit Cards Can Be Good Or Bad

Having a student credit card can work to your advantage or disadvantage – depending on how you manage it. Sure, applying for a college card is easy despite your lack of personal credit history. In fact, these cards are your stepping stones toward rebuilding your personal credit. However, let’s not forget the risks associated with having a credit card.

Have you checked the interest rates and fees of the card? Are you aware of exactly how much it will cost you to maintain your college credit card? Indeed, getting an approval is quick and easy. But it’s in the choosing that you’ll want to spend more time with.

Surprisingly, there are credit cards for students that offer a very low APR to attract customers. But to which of your charges is the low interest rate applicable? Take note that there are credit cards with more than one APR. The low rate may either apply to either your balance transfer charges or purchases only. It is also important to make sure that the initial low APR isn’t subject to change any time after you signed up your contract.

Thus, the best way to compare credit cards is to examine the Terms and Conditions. Here, you should be able to learn about the exact fees and terms of the card right from the beginning. Failing to review the agreement may lead you to get the wrong student credit card.

Watch out that student credit card!

Enjoying the benefits from a student credit card greatly relies on your personal management. Use your card only for important purchases. Make sure that you can pay off your balances in full before your scheduled due date. This way, you can avoid the additional interest rate costs and keep your credit history in good standing.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Check Your Billing Statement Regularly

As a student credit card holder, it is your duty to check your monthly billing statements to make sure that everything is correct. If you find certain purchases that you never made but are reflected on your account, you have the right to dispute about them.

Surprisingly, a lot of students with credit cards may know what to do when charged with bills they never made. Even if you have your card with you all this time, it is possible that ID thieves may have stolen your credit card details and used them to commit fraud against you. So what should you do?

How to Dispute your Credit Card for Students

Dispute your student credit card

The Fair Credit Billing Act encourages all consumers to exercise their rights to make disputes. What is the proper way of disputing false transactions? The first step is to call your creditor immediately and inform them about your complaint. It is best to speak with the manager or someone from the customer dispute’s department of the bank. Remember to speak about your concerns in the polite and dignified manner.

Credit card issuers usually have a policy on providing customer refunds for unauthorized credit card transactions. After discussing your dispute over the phone, don’t forget to follow it up with a formal dispute letter and send it via registered post mail. In this case, the credit card issuer will get in touch with the merchant involved to arrange for charge back.

It’s also a good idea to review your credit card’s terms and conditions particularly with regards to fraudulent charges. If you card provides a zero liability fraud protection, you wouldn’t have to pay for a single cent for those unauthorized purchases. However, take note that your issuer will need to conduct an investigation to prove if your dispute is indeed, a valid one.

Take note that you only have 60 days to dispute false charges from your bill. This is why it is very important to examine your billing statements as soon as they arrive. There have been cases when ID thieves call a credit card company and demand for a change of address to prevent the real cardholder from being immediately alerted. If you haven’t receive any billing from your credit card company as scheduled, call your bank and inform about it right away.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Money Management Lessons Can Start Early

Introducing basic financial management techniques to kids will help them become more prepared in handling their personal finances in the future. Teaching kids to save money from their allowances is a good way to develop their money skills. Instead of giving money for school on a daily basis, older kids may be given a weekly or monthly allowance so they can budget their own money.

Parents should become role models for their kids and money matter isn’t an exception. Children often look up to their parents and if your kids can see how you manage your finances, it shouldn’t be difficult to share with them financial management tips that you practice in your own household.

Kids who are in high school should already be aware of what a credit report is and its importance. When ordering a copy of their individual credit reports, parents can show it to their kids and discuss the contents of the document. Teach your kids about the categories in your credit report and explain why it’s important to build a good credit rating. Parents must see to it that their kids understand the credit report before they be allowed to have their own credit cards.

Obtaining a Student Credit Card

Youngsters who have graduated in high school are often the best candidates for student credit cards. Although some parents choose to give their kids credit cards while still in high school, many college students apply for their own credit cards in college. Take note that having a credit card at this point is essential for building personal credit history.

Parents play a big role in helping their kids make the right credit card choice. As a card holder themselves, parents can recommend specific issuers that they can consider. Since it will be the first time that your kid will own a credit card, you can guide them through the whole process of comparing different student credit cards, weighing choices, down to submitting their credit card application.

Many issuers of student credit cards do not require a cosigner for the applicant as long as he/she is at least 18 years old. This means, a college student can get obtain a credit card for student with or without parent’s permission. Hence, it’s best for parents to volunteer in helping their kids find the right credit card with the best deal.

Guidance should not end with choosing the best credit card for college. Parents should share their own experiences in managing a credit card account. Of course, students must be constantly reminded to pay their bills on time and use their credit cards with discretion. Last but not the least, parents should encourage their kids to maintain a balanced point of view with regards to money issues as doing so will protect them from the dangers of bad debt.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Choosing Your First Credit Card

Young People and Financial Challenges

In the past years, credit card issuers allow students to open their own credit card accounts provided they have a co-signer. Some credit cards still require a co-signer but since credit card companies introduced student credit cards in the market, it allowed young people to apply for a credit card on their own.

Issuers of credit cards for students often send advertising mails to potential cardholders as soon as they graduate from high school. Many college students opt to apply for a student credit card because it gives them the convenience to spend even without cash. Parents also provide their kids with student credit cards to ensure that they’ll get the financial support they need.

There is a danger in signing for the first attractive credit card offer you receive in your mail. If you haven’t done your own research, you won’t be able to compare potential choices. For instance, the card may offer a very low introductory APR. However, the low interest rate may only last for 6 months and afterwards the regular rate would be much higher than you expected. If you won’t take time to shop around, you could be stuck with a student credit card that imposes expensive charges.

Reading and understanding the fine print is a very important step that you should never overlook when choosing a credit card. This advice isn’t just for young people but for adults who are planning to get a credit card as well. Don’t be discouraged even if the Terms and Conditions are written in very small letters and may seem to be very long. Knowing the real deal can save you from possible trouble in the long run.

Prepare Yourself for the Responsibilities

What responsibilities should you prepare for? Owning a credit card isn’t just about the luxury of spending without cash. It involves duties to your credit card issuer. Staying true to your obligations as a credit card holder is your best protection against bad credit.

As soon as you receive your student credit card, make sure that you use it only on important purchases. Before charging any expense to your card, consider carefully if you can pay back your balance in full and on time. Where will you get the money to pay off your charges?

Use your student credit card to build your personal credit history while you’re still in college. Having good credit will prepare you financially especially when graduate from college. A good credit standing will give you an advantage when looking for a job or applying for a loan.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Don’t Just Cancel Any Card

Why should you be very careful when closing out a credit card account? First of all, canceling the wrong account can badly affect your personal credit history. Yes, closing out the wrong account can significantly pull down your credit score. Why so?

If you have an existing balance in one of your credit cards, you should pay it off first before canceling. Never cancel a card if you have a unpaid balance. If you do, your credit card issuer will report it as defaulted charges and will be reflected in your credit report.

Don’t close out your old credit card accounts especially if that was your first card. Remember, the credit history you’ve built is largely based on that particular account. If you cancel, it would be like deleting the oldest parts of your credit history. If you must cancel a student credit card, pick out the ones that are more recent.

What if you want to cancel your old student credit card because of its high interest rate? One way to deal with it is call up your credit card issuer and request for a lower rate. Yes, you can actually make this request from your credit card company especially if you’ve been a long time customer and a good payer. Tell your credit card company that you may be forced to close the account because of the high rate. Even if your request isn’t granted, it is still worth a try.

You can still keep your old credit card without letting the high interest rate bother you. How? Use your card occasionally for small purchases and pay off your balance in full immediately. Do not wait until your due date comes before submitting your payment. If possible, pay off your balance the same day you made the purchase. This way, you won’t have to pay the additional interest rate cost and you’ll still be able to keep your student credit card active.

How to Cancel Unwanted Student Credit Cards

Again, seriously consider the student credit cards you own and pick out one that is safe to close out. Once you’ve made the choice, you must call the issuer and make the request. The representative of your credit card company may try to change your mind by making offers.

You will surely be asked why you want to close the account. If you’ve already decided to cancel the account, just tell the representative politely that you’ve made a final decision. Don’t forget to note the name of representative you’ve spoken with.

Follow up your phone-in request with a letter. Stipulate in your letter that you are personally requesting to close the account and that there are currently no problems in your active account whatsoever. It may take a few weeks or a month before your credit card issuer sends a notice that your request has been done. Once you do, check your credit report right away to make sure that the account has indeed been closed.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

The Risk of Owning Too Many Credit Cards for Students

Can you really have too many credit cards under your name? The fact is, college students are not the only ones who should be concerned about this issue. Even adults can be put at risk of bad debt if they own too many credit cards in their wallets. It actually doesn’t matter whether you’re a college student or not. Everyone should think about the risks each time they sign up for a new credit card account.

Sadly, young people are more at risk. Issuers of credit cards for students may take advantage of this vulnerable market. Since there is a great number of college students in the market, credit card companies spend a lot on advertising campaigns directed to this group of market. If you’re not careful, you may find yourself easily enticed by the seemingly attractive deals from student credit card issuers.

How many credit cards should you get? According to financial experts, one or two credit cards for students should be enough. One to two cards should be sufficient to help your personal credit history and provide financial support.

Why must college students avoid getting multiple student credit cards? First, managing too many accounts can be complicated. There is also a bigger tendency that you will use your credit card if you know you have available credit. The challenge of repayment may come later. Unfortunately, many youngsters find themselves already stuck in bad credit before they even realize that they had a problem. Yes, uncontrolled credit card use can be avoided if you only have one card in your name.

Don’t Give In to Credit Card Debt

Some students may reason out that they’re conscious about their spending and that they will never fall in the debt trap. This could be true but if you really seriously think about it, there’s no good reason why a student should apply for multiple credit cards.

Remember that you’re still in college and you’ll most probably be paying off your balances from the money your parents send you. If you are a working student, imagine how burdensome it would be if you had to juggle between multiple balances from each of your credit cards. Yes, you’ll lessen the risk of bad credit if you stick with just one to two credit cards.

Owning many credit cards will not boost your credit score. Instead, you can build good credit and keep it that way if you stick with just one card and be consistent with your payments. So if you plan to get a student credit card, pick out the one that matches your needs and use smartly.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009

Owning a Credit Card for Students is a Responsibility

Just because you’re old enough to own a personal credit card doesn’t mean you should rush to get one. Ask yourself, are you really ready to be a credit card holder? Do you know how to manage a credit card account and avoid the dangers associated with uncontrolled spending? Have you really found the right credit card for student? Did you take time doing research and comparing your choices or did you just submit your application without much thought?

Many credit card companies offer a very low minimum due payment which at first glance, may seem like a very enticing deal. However, the minimum due payment doesn’t exempt you from your obligation to pay the interest rate costs each time you carry a balance in your account.

Thus, the longer you put off paying your entire credit card balance, the more you’ll have to pay on additional interest rate fees. This is why student credit card holders shouldn’t fall into the habit of submitting only the minimum due payment because it will put you at risk of bad debt.

Building Your Credit History

Some students have the false notion that in order to build a higher credit score, they need to maintain a balance in their account. Is this true? Hardly. The fact is, you can raise your credit score and maintain a good credit history by being consistent with your payments. If you pay off your monthly balances in full, you avoid the risk of late payments and bad debt.

If you decide to get a credit card for student, your primarily goal should be to build up a solid credit history. The only way you can achieve this goal is to avoid late payments and to stay within your given credit limit.

Know Your Student Credit Card Well

Deciding on which student credit card to get can be a tough one. If you won’t study your choices very carefully, all credit card offers in the market may seem like a great deal. In order to find out the truth, you need to compare your choices based on the Terms and Conditions of the card.

Once you have a student credit card, how can you avoid the snare of bad debt? Use your student credit card on sensible expenses and closely keep track of your account. Pay off your bills on time and avoid exceeding your credit limit. In case you can’t submit your payment on time, pay your minimum due and speak with your credit card issuer to request for a deadline extension. Whatever you do, never ignore your credit card bills. If you didn’t receive your bill on time, inform your issuer immediately and inquire about your balance.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009