Control Your Student Credit Card

Uncategorized, credit cards

For a college Student, a student credit cards offer a convenient way to make purchases. However, you should realize that there are other options available. Instead of paying with a student credit card, you may want to consider alternatives that provide immediate payment.

• Prepaid student credit cards require an upfront deposit to secure charges to the card.
• ATM cards allow you to obtain 24-hour access to money in your bank account
through automated teller machines.
• Debit cards can be used to obtain cash at ATMs or to make purchases with
money from your bank account.

Cash is always an alternative. Saving money to pay for a purchase with cash rather than with a student credit card ensures you will not pay additional interest charges.

If you feel you are prepared to handle the responsibility of a student credit card, be sure to shop around. Doing research will help you choose a student credit card that you can use for many years to come. To find a student credit card that is best for you, start by comparing several different student credit card offers online or from the offers you receive in the mail.

Before you make your choice, be sure to carefully study the fine print. Look for a student credit card that offers the following options. The lowest annual percentage rate (APR). The APR is a measure of the cost of credit, expressed as a yearly interest rate. A student credit card may have different APRs for purchases, cash advances and other types of transactions. Be cautious of student credit cards that offer low introductory interest rates, such as 0% APR. The introductory rate only lasts a short time before it increases dramatically. Some student credit card companies charge an annual fee in addition to interest charges.

A grace period is the time between the date of your purchase and the date when the company starts charging you interest. Benefits for using the card, such as cash-back rewards or airline miles are good if you have an interest in these things. However, do not apply for a student credit card for the wrong reasons. You should not sign up just to get a free gift or special discount.

Once you select a student credit card that is best for you, you must complete the company’s application process. The agreement contains the terms and conditions that govern your use of the card and outline your responsibilities, as well as those of the student credit card company. When you receive your student credit card, you may be asked to activate it online or by phone.

Every time you use your credit card, you are obligated to pay back what you have charged. Student Credit cards can be dangerous if not handled responsibly. The following success strategies will help you manage your credit cards.

Understand the Terms and Conditions

Here are some important terms to understand before you start to use your student credit card.
An annual fee may be charged simply for having the card, depending on your credit card company. Your credit limit or credit line is the total amount you can charge on your credit card, including purchases, cash advances, balance transfers, fees and finance charges. You may request an increase or decrease in the amount of available credit you have. Your student credit card company may charge a fee for this request.

Your grace period is the set amount of time, usually 15 to 30 days, during which you can pay your credit card balance without incurring interest. Over-the-limit fees may be charged if you exceed your credit limit. Some companies will charge you a one-time fee, while others charge the fee each time you make a purchase over your limit. The fee is usually $20, $30 or a percentage of the amount you have overcharged.

Cash advance fees are charged when you obtain cash from the ATM by using your student credit card. This will usually cost you an additional finance charge of 3% to 5%. The fee may be a flat fee or a percentage of the cash advance.

Balance-transfer fees may be charged when you transfer a balance from another credit card. You may be charged a balance transfer fee from the original card and the new card.

Late-payment fees are charged if your payment is received after the due date or if you do not make a payment at all. Some companies have a set fee, such as $20 or $30, while others may charge you a percentage of your minimum payment. Making late payments will almost always cause the student credit card company to increase your interest rate.

You may be charged other fees depending on your credit card agreement. This may include fees for opening a new account, paying your bill by telephone or paying your bill with a check that is returned for non-sufficient funds.

Each month, you will receive a billing statement from your student credit card company. Though you are only required to make a minimum monthly payment, generally 2% to 4% of your balance, it is best if you can pay your balance in full each month. If you do not pay your bill in full or choose to only make the minimum monthly payment, you will be charged interest on your remaining balance and it could take a long time to pay off your debt.

Student Credit cards make it easy to purchase things now and pay later, but it is also easy to lose track of how much you have charged. Keep track of how much you owe throughout the month to avoid overspending. Before using your student credit card, ask yourself if the purchase is a necessity or if it is something you can live without for now.

Student credit cards.com @ May 11, 2008