Play The Student Credit Card Game
When you are attending a college, you just might receive dozens of student credit card offers in the mail every week. Each offer sounds just gets better and better. Many of these offers will have a low introductory APR on purchases or balance transfers. I see the bold print spot lighting the low interest rate that enticing line of credit and rewards such as rebates or frequent flier miles. You may quickly fill out the student credit card application without carefully reading the small print.
You may think you know how much the APR is on purchases, balance transfers or cash advances, but do you really. How much will the APR increase if you become delinquent with a payment or if you have exceeded your available credit limit? What late fees are going to be associated if your payment has been received late? What about fees for going over your credit limit? Do you see annual fees or setup fees?
When comparing student credit cards and credit offers, you must accurately determine how much a card will really cost you in the end. Credit card companies will offer a variety of interest rates, fees and incentives and that is why choosing student credit cards is a very big financial decision. Research your options thoroughly and be sure that you are saving money on interest as well as fees.
You should know if your student credit card has a fixed or variable rate. You will know this by viewing the card holder agreement or disclosure box on the application. Remember that fixed rates are not always locked and will fluctuate for a number of reasons on many of the student credit cards.
The chances are high if you have a solid credit score; you will continue to receive solicitations for student credit cards and student creditg deals offering zero percent interest for a limited time. This is where you can really take advantage of some good, low-rate offers that can come your way.
It is important to be aware of the fine print. This will always tell the true story. Sometimes the sweet deal you are being offered will only apply to new purchases and not a balance you have transferred or any cash advances. Cash advances will always have a higher interest rate than other transaction but you might occasionally receive promotional checks that offer a lower interest rate and will be debited from your credit line when you use it. STUDENT CREDIT CARDS: Again, I cannot emphasize enough that you must read the fine print. There could be hidden fees if specific requirements are not met.
In many cases, the student credit cards that are offering low interest rates for a period of time could jump up later in the term. This is when you need to play the credit card game. You might try (hard) to pay off your balance before that low introductory rate does expire. You may also be able to look for another offer with a lower introductory rate on balance transfers that will enable you to transfer your balance to a different student credit card at a lower interest and no longer use the original card.
Student credit cards.com @ August 16, 2008