When you apply for a credit card for the first time, there are probably a lot of things you're not familiar with and even though you're probably in a boat with a million other students, there are things you need to know when you use your credit card for the first time. Even if you haven't applied for a credit card for the first time, there are a few things you need to look out for.
The APR
The APR or otherwise known as the annual percentage rate is the rate that's going to applied to your unpaid balance. Every time you don't pay off your bill in full, you're going to be charged this rate. This is why I can't stress enough that you pay your bill off in full. You can't treat your credit card like a piece of plastic that's like free money. If you have this mindset, I would highly advise you stay away.
The annual fee
With most first time credit cards, you'll find that most of them don't have an annual fee but it is something you're going to want to look out for. An annual fee is a fee that the credit card companies are going to charge you regardless of how much you use the card. This fee can range anywhere from a dollar and on. There are so many cards on the market; I would recommend you get a card that doesn't have an annual fee.
Intro Rates / Balance Transfers
Sometimes when you look for a credit card for the first time, you may find that they are offering a teaser rate. Let's say for example, that you're looking at a cash back credit card. Some companies may offer the double cash back for the first thirty days. Some people would glance right over this thirty day period and think that they are getting this rate for the length of this card. Make sure that you know exactly what rates you're getting for the life of the card.
The rewards
I think the rewards are one of the most important parts of the card that you can really capitalize on. One of the main reasons people get credit cards are just for the rewards. You're going to have to remember that if you don't pay your bill off in full, you're not going to be able to take advantage of the rewards. Rewards out there range anywhere from cash back to a point based system. This all depends on what you want.
These topics that I just mentioned are the main points that you're going to want to know about when it comes down to your credit card. An easy way to see what your card offers is to either look at the terms and conditions the card carrier gives you or to check the card information online. As long as you as know what your card is about and you're responsible, you shouldn't have troubles with your credit card.
When you start to think about school, you start to think about all the stress that's involved when it comes to classes, making friends, getting homework on time, finances, and list can go on. When it comes to reducing stress, most students will do just about anything to do this. What a lot of college students don't realize is that you're able to make your finances a lot more manageable with credit cards.
I'm sure by now you've heard a million bad things about credit cards. It's like the old saying "There's always one bad apple in the batch." The same goes with society. There's always people out there ruining the image for the rest of us. What students don't realize is that there are a lot of people out there that don't know how to manage their credit cards and finances therefore putting them in that awful debt black hole.
Credit cards are a great way to keep track of your finances and benefit off perks at the same time. If you're currently using cash, you're not getting anything for that money. If you set that cash aside and use a credit card, you're now going to get some sort of a reward. When your bill comes in the mail, you can simply send the cash/check off to the credit card companies.
When it comes to college finances, you may find that it's hard to earn cash and I understand that. What you need to realize is that when you don't have cash, you shouldn't be using your credit cards. If you do have the cash, it's important that you start a budget. With a budget you're able to benefit with the maximum perks of a credit card. Let's show how they can benefit you below.
- Get rewards for every dollar you spend.
- Know exactly what you're spending each month.
- Track your spending month to month all on one bill.
- Build your credit history.
- Great to have for emergencies.
These are some great focal points that you should look into when you start to apply or currently have a credit card. So many people want to knock down the credit card market but they don't want to point out the positive effects of a credit card. I'll not this again, a credit card can be deadly, it all depends on the user. What you need to remember is that a credit card can't be treated like play cash. You need to be able to pay off your bill every month, no exceptions.
If you think you're a responsible college student and you want to keep track of your expenses easier, it's probably the best thing that you look into a credit card. Even though you hear a lot of negative side effects, like anything, you should look into the positive effects as well. If you think the positive will help you out in college, then you have nothing to lose. If you think once you get it, you'll abuse it, then you can simply cancel it and go back to your financial ways you used before.
Tom Tessin has sinced written about articles on various topics from Mileage and Fuel, Education and Finances. Find and more of Tom's work at FINDcollegecards. Tom Tessin's top article generates over 673000 views. to your Favourites.