Financial needs of college students are unique. Credit card companies have taken a notice of this and come up with student credit cards. It has become much easier to acquire student credit cards than ever before. Many students get calls or e-mails from several credit card companies urging them to purchase their credit cards.
If you are a student and get such calls to buy a student card, you need to remember that it is easy to accept the offer, but it is important to be careful while selecting the best student credit card. Choosing the ideal student card is about evaluating your requirements and weighing those needs against the offers that credit cards companies are providing.
Also, keep in mind that cards are very different from standard credit cards. You cannot use them to buy every other thing. So, begin by managing your finances wisely.
Basic Differences between Student and Standard Credit Cards:
Credit card companies do not charge any annual fee for student credit cards. However, if you are applying for normal cards, you have to pay speculated charges each year as annual fees.
To obtain standard cards, you need to be employed and there is a minimum income criterion for it. Whereas, to acquire student cards, it is not at all necessary that you be employed and there is no such minimum wage criterion.
You do not need to bring someone as signatory in case of student credit cards but in standard credit, you have to provide a co signer. Apart from this, there are zero percent introductory fees on student credit cards and after this introductory tenure ends, you will have to pay minimum APR (Annual Percentage Revenue). However, standard credit cards come with some introductory fees and have a high APR.
Students can access as well as manage their accounts online, without paying any initial additional charges. An exactly opposite rule applies for standard credit cards. You also get gifts or rewards as cash back, points, if you use student credit cards.
After selecting the right student credit card, do not hit the nearby city mall and use your card to buy everything that appeals you. Unnecessary splurging is the easiest way to hamper your credit. Buy only what you need and make sure to pay off the bills on speculated time. This will avoid accruing of late payment charges.
Maintaining a List:
You need to keep a track of all the purchases you made using student credit cards. Maintain a list on the computer and when the bills arrive, compare the amount (on bills) with the amount in the list. See if it tallies or not, because occasionally companies charge customers with double the amount for a product. If this happens, contact your company immediately and inform them.
These are certain important aspects about cards such as researching and learning how a card works, which one needs to know while applying for any type of card. When it comes down to purchasing, make sure you also use your head and not spend what you don't have in the bank.
As a parent, you want your children to be very responsible once they head off to college. Whether they are attending a local university or they are attending a college one thousand miles away, you truly care for them. When you think about your child going off to college, you tend to worry about their safety and financial status. You not only want your child to be safe but have enough money to get by each day.
As your children grow old and reach the ripe age of 18, they are considered an adult in the United States. Not only can they now buy cigarettes and lottery tickets, they can also apply for a student credit card. Before your child goes dipping into the credit card market, you're going to want to point out a few things to them even if they don't tend to listen. Like a alcohol or drug lecture, a credit card lecture should be taken very serious just as important.
Why should a parent talk to their child about a credit card? It's simple. A credit card Is your child's financial future. You want to make sure that they don't start spending money that they don't have. If they already have student loans, a credit card may be a bad idea. The more debt you have when you graduate means the harder you're going to have to work to pay it off. A credit card is just going to make it worse.
Before your child heads off to school, you'll want to point out a few things they should look for when applying for a card. The first thing is that they should never ever apply for a card that is pushed into their face at a campus. They won't get to know the details of the card and most of the times; they will find themselves getting ripped off. The only reason they will apply for this card is for the stupid t-shirt of free burrito.
The most important thing you'll want to tell your child is that they research their credit cards online. You will want them to look into the rewards and most importantly, the APR rate. The APR as you know by now is the interest they will pay on the balance they don't pay off in full. It's wise to tell them right off the bat that they treat their credit card as if it were a gift card with a set limit on it or better yet, a debit card. Make sure that you drill into their head that you can't spend more than what you have.
As you know by now, it's hard to bury knowledge into a child's head. It's even harder when they turn 18. This of course is the age that they think they know everything and don't need the advice. If you just sit them down or print them up a little sheet on how to build your credit, you can at least say you tried.
Tom Tessin has sinced written about articles on various topics from Mileage and Fuel, Education and Finances. Find a and more of Tom's work at FINDcollegecards.. Tom Tessin's top article generates over 673000 views. to your Favourites.