Student Credit Cards For A Struggling College Kid
You might be thinking of getting your own student credit card and that might be a smart move. But first, let’s see if you truly understand what getting and using a credit card entails.
Universities all over have been a great hunting ground for credit card providers. Since you are embarking on a life of your own, hopefully gaining more and more financial independence from your parents as each year passes by, credit card issuers think of you as prime market for their line of products and services. Nevertheless, there is a lot of things that you should know about credit card applications, fees, charges, and advantages and disadvantages. Credit card companies do not target a market if that market does not show signs of profitability so you had better do your research before embarking on a life of debt.
1. The traps of easy purchase with a swipe – You will find that having a credit card is really pretty convenient. And safety-wise, it is aces too. You would not have to carry cash around with you so there would be no need to count your change or to make big purchases with cash. You would not worry about losing your hard earned money to thieves and other unscrupulous characters. But, and this is big, credit cards do not offer free money, which means, you are going to have to save up enough cash to cover for the buys you made against your credit card.
2. Zero percent APR and Interest Rates – You will like that offer, and chances are, you will look for a credit card issuer that allows for that package. This though, lasts for only six months, a year at most. You will want to keep your eyes away from the candy and look through the details of your application. Some credit card providers offer a year long interest-free credit service but interests skyrocket afterwards. Additionally, you will want to look at policies indicating the cancellation of this privilege if you miss one payment date.
3. Credit limits are boundaries you will need to always keep in mind – A credit limit is something that you will need to watch out for and respect. You need to keep tabs on your spending. Typically you will want to keep within 30% or 40% of the limit given to you so that you will not have trouble coming up with the money to pay for it on due dates.
4. Look out for hidden fees and charges – Always read what you are signing for and keep in mind that services from credit cards have fees. If you overcharge for example, even if you overcharge a mere dollar, you will be charged for that. Cash advances also have fees, and if you miss a due date of repayment, then you will be contending with interest plus late fees.
5. Take advantage of rebates and cash back promos – Each credit card will always have rewards and perks so for you to enjoy your credit card best, always be on the lookout for benefits that your credit card offers.
See: Student credit card
Tags: College Student Credit Card, student cards, Student credit card