There’s a great deal of information that consumers need to know about credit. Being aware of the basics of credit card management as well as establishing credit history will help first-time cardholders in selecting and using their very first credit card.
And not only that. Being knowledgeable about credit cards will also help individuals avoid making costly mistakes as they apply for credit card programs. So what are the basic information that all prospective cardholders, especially students must be aware of?
Things You Need to Know About Student Credit Cards
- There are different types of credit cards. Even though credit cards have the same shapes and sizes, they do not carry the same terms and conditions. Before you obtain a certain type of credit card , know what options are available to you. You will be more likely to select the most suitable card for your needs and financial capabilities if you know exactly what is being offered by different card issuers.
- Credit cards possess different features. Credit cards carry different features like interest rates, credit limit and payment terms. These features must influence your decision whether or not you will take the credit card program being offered to you. After all some of these features can affect the cost you have to pay later on.
- Card charges are billed once a month. You should know that there is more to credit card billing than getting a mailed statement every month. So you need to understand the billing process of your chosen card issuer. This way you can comprehend what and how your credit card company charges you each month.
- Credit cards come with fees and charges. Credit card companies make money by charging fees and penalties on the credit card for bad credit programs they offer. Still, you can avoid paying large fees and charges, if you will make the right decision on which credit card to apply for and even on the way you pay your monthly bill.
- Choose credit cards with care. Take your time in shopping and comparing the features and terms of the cards you intend to apply for. This way you can choose the right card that will work to your advantage.
- Be diligent and persevering. Because your very first card will be the key in establishing your credit history, you need to be diligent in doing research.
- Pay your bills and charges on time and in full. These two activities will help you maintain excellent credit ratings which are important since they influence the credit and financial options that will be made available to you.
- Fight the urge to get more than two credit cards. Applying for way too many cards can cause a negative impact on your credit history. And it can also reduce your chances of getting approved for the credit cards you have been applying for. So resist the urge to get too many credit cards and be contented with the ones you already have.
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