Anyone who has ever been to a retail or department store knows how easy it is to apply for a credit card. Sales people offer the 10% off the purchase price to lure customers into applying. Credit card companies want you to save your cash and use their MasterCard or Visa credit cards. It is a buy now and pay later world. For those who have recently turned eighteen, this can seem like a tremendous power, especially if cash is tight due to school.
Instant approval credit cards may be a godsend when you find yourself in desperate need of school supplies or in need of the basic essentials. However, far too often the ability to easily apply and get one can lead to massive financial problems. Student credit card debt is out of control. Students are inundated with bank credit cards, MasterCard or Visa credit card offers and many do not consider the ramifications of how easy it is to abuse their use.
No one doubts that college is expensive. Tuition, room, board and associated fees can wipe out savings very quickly. You, as a student, may have such an immense class schedule that makes working part time impossible. This is especially difficult if you are involved in school activities, such as sports or academic organizations. Most parents cannot afford to pay for all the extra expenses a student incurs, not to mention if there are off campus expenses and luxuries wanted.
Don't Fall Into Credit Card Debt
It is important to remember that when you apply for a credit card and have received it, you have agreed to the lender's terms. Only use the line of credit as an emergency source of funds should you find yourself in need. You do not want to find yourself with maxed out cards and no way to meet the monthly minimum payments. Pay attention to the fine print and the interest rates.
Apply for a credit card and use it when you absolutely must. Do not continuously apply for those college student credit cards just because you can save 10% off your purchase. Eventually, you will have to pay back the balance and you may not have the funds available should a real emergency happen. Try to remember that going out with your friends for a night on the town does not qualify as an emergency!
Be Financial Responsible with Your Credit Card
On the other hand, while you want to have a good credit rating, each credit card you apply for goes against your credit score and can begin lowering it dramatically. There is a delicate balance between improving your rating and seriously hurting your credit score. Be smart, build credit ratings, use your credit wisely and you will learn how to be financially responsible.
So many different choices for credit cards: 0% APR credit cards, travel rewards credit cards, 0% balance transfer credit cards, and cash back credit cards. Selecting the right card for the way you use your credit card can mean a big difference in your pocketbook. Use this quick guide to help you spot the differences in your credit card offers:
*Will you carry a balance every month or almost every month? If so, a lower interest rate is better for you. If you transfer a high balance credit card to a lower or 0% APR credit card (often an introductory period), you will save even more.
*Will you be paying the credit card balance off every month? Then you will want to apply for a credit card without an annual fee. Finance charges may be higher, but since you pay the balance off every month, you won't be charged. Look for credit cards that offer grace periods, usually between 25 to 30 days, before credit interest begins.
*Will you be shopping for credit card balance transfer? Be sure to check out the transaction fees and the introductory periods. Occasionally your credit card company will offer you a credit card debt consolidation with convenience checks so that you can transfer one or more credit card balances, but be sure to check out the transfer guidelines.
*Will you need cash advances? Apply for a credit card that offers a lower APR and lower transaction fees. Be sure to read the fine print on their requirements. Some credit card companies impose a transaction fee and a cash advance fee plus the interest rate. Some credit cards charge a higher rate for cash advances than regular purchases.
*Will you be traveling frequently, and charging your trip expenses? If this is your situation, then a cash back credit card reward program may suit you best. Be sure to consider your interest rate first, however. Rewards should come secondary to your spending habits and the cost of the credit card itself. Cash rebate cards offer you a cash back refund at the end of the year that you can use anyway you choose. Other credit card reward programs offer purchase points or redeemable rebates. Airline credit cards offer you miles as credit for every dollar you spend, sometimes offering you double or triple miles.
Whatever credit card offer you apply for, be sure to carefully consider the terms of your credit card, including the interest rate (APR), annual fees, transaction fees and balance transfer fees. Those hidden charges can add up quickly and cost you more than what you bargained for, so choose your credit card wisely.
Both Keith Lee & Edward Vegliante are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Keith Lee has sinced written about articles on various topics from Internet Marketing, Credit Cards and Bankruptcy Law. To learn about the pitfalls of or. Keith Lee's top article generates over 27100 views. to your Favourites.
Edward Vegliante has sinced written about articles on various topics from Credit Cards, American Express Card and Student Credit Cards. Ed Vegliante runs , a well organized credit card directory designed to help you compare and apply for credit cards online.. Edward Vegliante's top article generates over 60500 views. to your Favourites.