Going to college is really expensive. If you are a college student that works during the summer break, a student credit card can be very helpful. You can charge expenses to your college credit card and pay it off with your earnings .
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.
Applying for Credit Cards for Students
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.
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