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Student credit cards can be useful. As trite as that sounds, it’s the best way I can describe them, from very personal experiences. Allow me to tell you about a few things that happened to me in my freshman year, and shed some light on the foggy misconceptions of student credit.
I was not a privileged student as far as finances went. I was constantly searching for ways to acquire funds just to cover my tuition and book expenses. Other kids got to blow their parents money on liquor or ultra trendy/preppy frat apparel (pastel colored polo shirts and chino khakis galore, don’t forget your $80 sandals), while I scratched and clawed to just get to class. At one time I attempted to sustain myself by playing poker, but that proved to be a futile idea.
It got to the point that I had been kicked out of the university multiple times in both semesters of my first year. Ironically, each time I was only coming up about $300 short of payment, though that was enough for me to have to scramble for some new plan to save my credit hours. Of course, once I made payment and was re-admitted into school, I’d be hit with a $200 late registration fee, and the cycle would begin all over again.
While I was suffering, there was an easy solution directly in front of my face each time I passed my bank. A student credit card typically has a spending limit of about $500 – $1,000. It’s deliberately set low so students learn to spend sparingly, and banks are protected against witless college kids spending half of their cash reserve and then failing to make payment. However, my periodic bills of $200 and $300 would fit snugly under that limit, and even leave enough on top for me to have enjoyed a few small luxuries.
I walked past all the signs for student credit cards without even looking because I was raised with the stigma that many college kids have, that of the parentally-installed thinking that credit cards are bad news if you’re young. Potentially because so many parents have found themselves on the wrong side of the credit and interest equation, thereby believing their offspring will fall into the same trap.
I wish I hadn’t thought that. I could have been spared so much trouble – and so many late fees – if I’d just applied for a card.
Some student credit cards also require a co-signer. Banks do this as a safety net for themselves and the student, in the event the student can not make payment, and you can’t blame them for wanting to cover the symbolic rear-ends of all parties involved.
Students facing my former plight may fear the high interest rates student credit cards have compared to other cards. That’s entirely understandable, and credit cards shouldn’t be taken lightly. However if you’re responsible enough to handle the payments, you can build good credit early, which will give you endless advantages later in life.
Tags: Article Body, Book Expenses, College Kids, Easy Solution, Freshman Year, Khakis, Late Registration, Luxuries, Misconceptions, Money Management, Multiple Times, Personal Experiences, Playing Poker, Polo Shirts, Registration Fee, Semesters, Stigma, Student Credit Card, Student Credit Cards, Word CountWord Count:Article Body:
Once a child enters college, there are lots of responsibilities that have to be faced by the child. One of the many responsibilities is to learn the art of managing their finances. A student credit card can prove to be both a great help but can also be an equal challenge. Most credit card companies bank on this opportunity of getting as many children interested in their student credit cards as possible. College student credit cards are often sought by parents looking for convenience and comfort for their children.
With the intention of getting more applications for student credit cards, credit card companies may offer free t-shirts, pens or CDs, anything that would attract the average teenager to apply for a student credit card or a college student credit card. However, before actually thinking of applying for a student credit card, the student has to learn how to use the credit card, to avoid falling into thousands of dollars of debt, outside their personal school loans!
The best way of getting your child ready to handle the responsibilities of a college student credit card is by applying for credit cards with both your names on it, and having a low credit limit. In this way, both you and your child have access to the credit card, while you get a monthly statement to get an idea of what the child has spent money on. Make it a point to budget a certain limit of money each month, wherein the child has to pay the amount off with their own money if possible. This way, the child learns not to pay for things that they cannot afford.
When choosing on the best student credit card for your child, choose one that has a low limit wherein the child has to be careful in spending money in order to remain in good credit standing. You can choose from either of the many tables and booths that are set up at college fairs or perhaps find the best student credit card with an online search. However, make sure that the company you are considering caters to student credit cards because these companies generally will have student credit cards generally have less stringent credit history criteria while also offering lower interest rates.
When choosing the right college student credit card, look for the company offering a longer grace period so that the child has more time to make payments for their expenses, before accruing any interest. It is always better to choose the student credit card that has no annual fee and a low late payment fee. This is of course to help the child that might face the prospect of incurring expenses over the long term with the card.
When applying for a student credit card, make sure to furnish accurate and true information about the student and yourself. You will have to reveal your name, address and phone number while the student will have to furnish information of the college, enrollment status and the year of enrollment to the institution. If any false information is provided, it diminishes the probability of getting the student credit card as the companies verifies all the information that is provided to them. Students that are employed or who have a substantial balance in the bank proves to be a more likely candidate for a student credit card. However, the maximum credit credit card companies offer students to start off with is usually in the range of $500 – $1,000.
One of the many advantages of having a student credit card is that the student can buy their school books using the college student credit cards instead of carrying money to pay for the them. This proves to be safer to the student. Student credit cards are best used to cover unexpected expenses the student may face. There are also student credit cards that let the student gain rewards for their purchase like cash back or perhaps even gas money for their trips back home!
Tags: Applying For Credit Cards, Article Body, Best Student Credit Card, Booths, Choose One, College Fairs, College Student Credit Card, College Student Credit Cards, Credit Cards Credit, Free T Shirts, Managing Finances, Many Tables, Pens, Personal School, School Loans, Spending Money, Student Credit Card, Student Credit Cards, Thousands Of Dollars, Word CountWord Count:Article Body:
Once a child enters college, there are lots of responsibilities that have to be faced by the child. One of the many responsibilities is to learn the art of managing their finances. A student credit card can prove to be both a great help but can also be an equal challenge. Most credit card companies bank on this opportunity of getting as many children interested in their student credit cards as possible. College student credit cards are often sought by parents looking for convenience and comfort for their children.
With the intention of getting more applications for student credit cards, credit card companies may offer free t-shirts, pens or CDs, anything that would attract the average teenager to apply for a student credit card or a college student credit card. However, before actually thinking of applying for a student credit card, the student has to learn how to use the credit card, to avoid falling into thousands of dollars of debt, outside their personal school loans!
The best way of getting your child ready to handle the responsibilities of a college student credit card is by applying for credit cards with both your names on it, and having a low credit limit. In this way, both you and your child have access to the credit card, while you get a monthly statement to get an idea of what the child has spent money on. Make it a point to budget a certain limit of money each month, wherein the child has to pay the amount off with their own money if possible. This way, the child learns not to pay for things that they cannot afford.
When choosing on the best student credit card for your child, choose one that has a low limit wherein the child has to be careful in spending money in order to remain in good credit standing. You can choose from either of the many tables and booths that are set up at college fairs or perhaps find the best student credit card with an online search. However, make sure that the company you are considering caters to student credit cards because these companies generally will have student credit cards generally have less stringent credit history criteria while also offering lower interest rates.
When choosing the right college student credit card, look for the company offering a longer grace period so that the child has more time to make payments for their expenses, before accruing any interest. It is always better to choose the student credit card that has no annual fee and a low late payment fee. This is of course to help the child that might face the prospect of incurring expenses over the long term with the card.
When applying for a student credit card, make sure to furnish accurate and true information about the student and yourself. You will have to reveal your name, address and phone number while the student will have to furnish information of the college, enrollment status and the year of enrollment to the institution. If any false information is provided, it diminishes the probability of getting the student credit card as the companies verifies all the information that is provided to them. Students that are employed or who have a substantial balance in the bank proves to be a more likely candidate for a student credit card. However, the maximum credit credit card companies offer students to start off with is usually in the range of $500 – $1,000.
One of the many advantages of having a student credit card is that the student can buy their school books using the college student credit cards instead of carrying money to pay for the them. This proves to be safer to the student. Student credit cards are best used to cover unexpected expenses the student may face. There are also student credit cards that let the student gain rewards for their purchase like cash back or perhaps even gas money for their trips back home!
Tags: Applying For Credit Cards, Article Body, Best Student Credit Card, Booths, Choose One, College Fairs, College Student Credit Card, College Student Credit Cards, Credit Cards Credit, Free T Shirts, Managing Finances, Many Tables, Pens, Personal School, School Loans, Spending Money, Student Credit Card, Student Credit Cards, Thousands Of Dollars, Word CountWord Count:Article Body:
In countries like USA, Canada, and the UK where college education is expensive, a student credit card proves to be handy in the event of a huge cash crisis. Student credit cards are useful in situations when students desperately need money to pay off their expenses. Major credit card companies like American Express, Visa, and MasterCard offer student credit cards with various incentives. Many credit card companies offer student credit cards with low interest rates and good offers.
Choosing a Good Student Credit Card
Any credit card company that issues a student credit card with low or no interest is good enough. Look for the best student cards – those that lend money at a cheaper rate and for a longer term. Most credit cards offer funds starting at the rate of 19% and higher for students. A personal bank loan can even be in the range of 6%, provided you are eligible for it. Several on-campus sources like student unions, departments, and the university itself along with some private sources, offer scholarships and hardship bursaries.
Many students prefer to own more than one credit card which has its own pros and cons. However, some nave students pay interests that are as high as 20%. They need to be educated on how to negotiate a good rate, opt for a 0% balance transfer etc. In short, this card, like any other, should be used intelligently and economically.
Tips to Use a Student Credit Card
1. Plan, plan, and plan your budget – Spending can be controlled by planning a budget, thus preventing bad credit. A credit card statement is the best way to decide your budget. List all the weekly and monthly expenses like food, books, bus fare, etc. and prioritize your expenses.
2. Stick to the budget plan – use the card only for unavoidable expenses. Plan the budget well in advance and follow the planned weekly and monthly expenses as you decided. Pay the balances on every statement, in time, and prevent debts from building up.
3. Use your credit card for major purchases – Use the credit card only for big buys and long-term purchases like furniture and books. Some credit cards for college students charge higher interest rates. Hence, to prevent debts and a bad credit record, credit cards for college students need to be used carefully.
4. Avoid overuse – Use the card very cautiously. Avoid overspending, for example, buying CDs on the internet and spending on beers and sodas for friends.
5. Avoid any help from your parents – Understand your responsibilities and control your spending habits. Use available financial resources judiciously. Parents should stop paying the debts of their wards and teach them to use credit cards intelligently. This also helps in encouraging their children into taking their own responsibilities. Parents can also put a limit on the card to curb splurges.
Effect of a Credit Report
Many employers check the credit report of fresh graduates. Good credit history always helps in getting good job offers. Keep the credit record debt-free before appearing for job interviews. A better alternative to a credit card for a college student is a prepaid debit card. This keeps you out of debt because it sets limits on your spending.
Some parents oppose the idea of providing their children with student credit cards. But these cards help a student learn to be a good manager of available finances. Credit cards for college students help students in obtaining practical experiences of managing available finances. Parents should educate their child about the risk involved in using credit cards. Make them aware of the threats of a debt, even before they enter college. To be on the safer side give them a prepaid debit card to help them avoid a crisis. Therefore, student credit cards actually help the growth of a young individual into a mature one.
Tags: American Express, Article Body, Balance Transfer, Budget Plan, Bus Fare, Campus Sources, Card 1, Cash Crisis, Credit Cards With Low Interest Rates, Food Books, Low Interest Rates, Monthly Expenses, Personal Bank Loan, Planning A Budget, Private Sources, Student Cards, Student Credit Card, Student Credit Cards, Student Unions, Teen WordWord Count:Article Body:
Keeping control of your money is one of the hardest lessons we have to learn as new college and university students. For many of us it is our first time away from home, and the first time we have to be truly responsible for all the financial affairs in our lives. Some get a handle on money matters faster than others. That’s just the way she goes. But if you’re not really all that sure where your money is going each month, here are a few things you may want to consider.
I. Avoid Temptations
If you have a particular weakness, and we all do, just stay away from it. If you love shopping, stay out of the malls. If you’re a tech-head, stick to once a year upgrades. Nobody says avoiding temptation is going to be easy. However, it is a must if you want to save money. When you want to give into your temptation, this is the time to use your “allowance”. Your allowance can be a set amount for ’special’ items, or just a big jar where you put your loose change at the end of every day.
II. Credit Cards
If you have a credit card, use it only for emergency. Although they are really handy, credit cards are dangerous and possibly very damaging to your financial future. Credit cards (and in particular student credit cards) have very high interest rates. If you are only able or willing to make the minimum monthly payments then you will very quickly end up with a HUGE amount of debt because of the interest. The really bad thing is that you will also have to pay interest on the interest you owe. So, credit cards are good in a pinch, but should never be used as an extension of your cash.
III. Credit Card Interest
If you have credit cards and your credit is in good standing, you should take the time to call your credit card company, and ask for your interest rate to be lowered. It is just as simple as that. Most people have no idea they can even do this so they never make the call. Just ask the rep for a better rate on your credit card and they will take care of it for you.
IV. Financial Consulting
Many financial companies, community colleges and even churches offer classes on how to manage money. In some cases the courses are free, but often they cost around $35 to attend: it is money well spent. Another choice you have is consumer-counseling services. This is a great if you are getting into debt trouble. The counselors will work with your creditors to lower your balances, interest rates, and establish workable payment schedule that you can manage.
Tags: Article Body, Cards Credit, Credit Card Company, Credit Card Interest, Financial Affairs, Handy, High Interest Rates, Interest Rate, Keeping Control, Loose Change, Malls, Money Management Tips, Money Matters, Money Tips, Student Cards, Student Credit Cards, Temptation, Temptations, University Students, Word CountCollege student credit cards have replaced student loans as a freshmans first student credit experience. At the sophomore level, out of a sample of 100 students, over 90% were found to be holders of at least one college credit card. The question is why do many students find themselves in a vicious cycle of debt with their college credit cards? Why are so many students astonished with the huge bills they receive each month? Most importantly, must it necessarily always be this way for a college credit card user or is there a simpler way?
There are plenty of statistical indicators to suggest that students run up credit bills regularly yet they do not pay their monthly dues on time. Approximately 21% of college credit card users have balances between $3,000 and $7,000. The number of credit cards in an average students possession keeps increasing, indicating that they might be acquiring new cards to pay off balances on old ones. However, this can lead to credit balances increasing even faster, adding more debt in this never-ending downward spiral.
Five Steps to Avoid the College Credit Card Debt Trap
The core reason of this pathetic plight is the absence of a disciplined and planned system of using credit. If you, as a student, wish to optimize the use of your college student credit cards, use the following guidelines to plan credit spending and you will not go wrong:
- Pay up on time. Late fees are the most unnecessary source of debt accumulation. Ensure that you always meet the minimum payment on your bill. Ideally, you should try to pay more than the minimum amount to reduce overall charges.
- Use the 20/10 rule. Be careful that you never, ever borrow more than 20% of your annual net income and never spend more than 10% of your monthly income on your monthly payments. In other words, balance your credit to avoid irregularities in monthly payments.
- Plan your credit expenses. With college credit cards at your disposal, it is easy to give in to the temptation of impulse purchases. This leads to escalating card balances and higher and higher payments over a long period. It is ALWAYS better to plan purchases on your college credit card for so you can ensure you only build up credit balances that you know you can easily pay off.
- Avoid taking cash advances. The finance charges for these are generally higher than if you were to make credit purchases.
- Avoid approaching your credit limit. There may be extenuating circumstances that will require you to make unplanned expenses. So overall, if you stay clear of the credit limit by avoiding unnecessary charges, you can have the mental satisfaction of knowing that you can comfortably use the credit when it is really needed.
The Boon or Bane of College Credit Cards
If these guidelines are kept in mind, you will find you can live comfortably with college student credit cards. These tips are especially useful if you see yourself opting for that extra job in order to pay your credit card bills. Your savings are precious so dont bring yourself to a point where you need them to bail yourself out of your credit-happy ways. A balanced budget is the best way to handle all your expenses. College credit cards are most certainly a boon, and yet they can become a bane if you are not careful.
Tags: College Credit Cards, College Student Credit Cards, Core Reason, Credit Balances, Credit Card Debt, Credit Card Users, Credit Experience, Debt Accumulation, Debt Trap, Downward Spiral, Five Steps, Irregularities, Late Fees, Minimum Payment, Plight, Sophomore Level, Statistical Indicators, Student Credit Cards, Student Loans, Vicious Cycle