With credit cards dominating the market world today, even college students are already prospective clients of most credit card companies. This is because studies have revealed that most college students have difficulty in maintaining their expenses especially to those who are far way from home. That is why credit card nowadays had been a ?must-have? for most college students.
Basically, college credit cards do not differ that much to ordinary credit cards. In fact, college credit cards are classified as secured credit cards because students do not have any credit history that will enable them to get a regular credit card.
But the fact remains them. Why would credit card companies be willing to provide college students with credit cards where in fact there is no basis where they can tell whether the student is capable of paying or not.
For two reasons, the credit card companies see a greater opportunity in them. One, survey shows that most college students remain loyal to their credit card company even after they have graduated from college and got have their work.
Second, reports show that college students are actually good customers. Most of them really do pay on time. Moreover, their balances tend to provide workable income to the credit card company.
On the other hand, college credit cards are also preferred by most parents, even if they know there will always be the tendency to overspend, due to the fact that college credit cards offer some fringe benefits that other credit cards cannot provide.
A good example of this is the student loans that will be used to pay the tuition fees. In doing so, students, as well as parents, will have an easier way of paying tuition fees at a more considerable rate and payment plan. Plus, there are college credit cards that had tied up with some establishments that are very useful to college students. They can, in turn, get fringe benefits and rewards from these establishments whenever they pay their balances on time.
Best of all, college credit cards have lower rates than most regular credit cards in the event that they maintain good grades.
Indeed, college credit cards are part of the ?must-haves? of the college students. In fact, it is also one way of letting them know the ins and outs of good financial planning and budgeting.
The goal here is for the students to know how to use the plastics responsibly, and they should know that whatever they do, it's under their responsibility.
Congratulations college freshman! You're about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.
One thing they may have not warned you about is how quickly you'll be bombarded with credit card offers. You'll find them in your textbooks, in your mailbox, and on every campus bulletin board. You'll be offered free DVD's, t-shirts, music downloads, and more in return for completing an application for credit.
Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD's, cigarettes, books, etc. - those small purchases can add up quickly.
Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.
Here are 7 tips to help you manage your college credit card needs:
1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.
2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.
3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can't pay off the balance, always make more than just the minimum payment.
4) Pay your bills on time, otherwise you'll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.
5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.
6) Less is better. You don't need more than one or two cards at the most. The more you have the more tempted you'll be to use them or to 'max' them out.
7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.
Using a credit card is a big responsibility whether you're a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.
Both Nicky Pilkington & James H. Dimmitt 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.
Nicky Pilkington has sinced written about articles on various topics from Credit Cards, Mastercard Credit Card and How to Sell on Ebay. More information about credit and credit cards is available at . Nicky Pilkington's top article generates over 90500 views. to your Favourites.
James H. Dimmitt has sinced written about articles on various topics from Credit Cards, Debit Credit Card and Cars. James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book 'IDENTITY THEFT- How To Avoid Becoming the Next Victim!' and other bonuses by visiting. James H. Dimmitt's top article generates over 18100 views. to your Favourites.