Student Credit Card Identity Protection

Student Credit Card Terms and Identity protection
From: StudentCreditCards.com


Student Credit Card Terms Defined

One of the first things a student hears when he or she is looking for a credit card is to “make sure you find the terms that are best for you.” This sounds helpful, but what does it really mean? In order to clarify what student credit card terms are right for you, you must first understand the different types of terms.

Perhaps the most important term is annual percentage rate (APR). The APR is the percent at which you are charged for using credit. Essentially, it is a measure of the cost of credit based on a yearly rate. The lower the APR, the better.

Another key term is periodic rate. This is the rate the card lender charges to the outstanding balance of the credit card on a monthly basis. Both the APR and periodic rate should be disclosed to the student before an application for credit is submitted.

Certain student credit cards offer what is called a variable rate plan. This type of plan allows the interest rate to change based on the current performance of the index. With a variable rate plan, the interest fee may increase or decrease. Again, everything revolves around the index. Variable rate plans can change monthly, quarterly, or annually. It is the card issuer’s responsibility to tell the student how often and when a variable rate plan is adjusted.

In general, it is a smart move to apply for student credit cards that offer a free period or grace period. The free period allows the student to completely avoid finance charges if the card’s balance is paid in full prior to the monthly due date. For example, if a student uses a credit card to purchase $100 in clothes and pays the creditor $100 during the free period, he or she is not subject to a finance charge.

Lastly, beware of annual fees. Not all credit card companies charge a yearly fee. The companies that do charge, typically bill $25 to $100 for simply owning the card..

Now, on to How To Protect Your Identity

Identity theft can create an unimaginable nightmare for the victim. By definition, identity theft occurs when someone uses another’s identity as his or her own. Identity thieves typically use the alias to apply for credit. Luckily, there are some things that can be done to protect against identity theft that everyone should consider doing.

When it comes to personal information, it is best kept personal. Bank account numbers, social security numbers, pin numbers should all be closely guarded. This information is gold to a would-be identity thief. Additionally, credit card numbers should be kept under wraps to prevent fraudulent purchases by a credit card bandit.

Along with protecting personal information, it is important to monitor your credit statements each month. For example, if you have a student credit card, know when to expect its arrival in the mail each month. With the statement in hand, review the statement’s charges closely and verify the charges are all legitimate. Contact the credit card company immediately if there are any unaccounted for transactions on the card.

Shredding documents such as pay stubs, credit card statements, and applications for student credit cards is another way to protect your identity. Whenever applicable, put passwords on important accounts such as college student credit cards and bank accounts. The password should be difficult to guess and include both numbers and alphabet characters.

As previously mentioned, an individual’s social security number is an important and valuable number. Do not carry your social security card on your person. Additionally, don’t give out your social security number unless it is absolutely necessary. If someone contacts you and requests your number, beware. E-mail and telephone scammers can sound very legitimate, therefore make it a personal policy to never give out vital information unless you are 100 percent sure it is safe.

Learn more or compare cards at http://www.studentcreditcards.com

Students Can Establish Credit

Students are uniquely positioned to establish their credit. Lenders and credit card companies realize that they are just starting out and may not have any credit history yet. There are companies that offer credit cards specifically to students to help them establish their credit. If you’re a student looking to establish credit, then you are smart to start early. Things like buying a house or financing an auto loan usually require a credit history, and as a student, these things are most likely in your future.
Establishing credit will let lenders and credit card companies see if you are good at handling finances or not. When you’re in the process of establishing your credit, keep in mind what a lender might be looking for. They want someone who has proven that they can make payments on time. They also want to know that they’ll make some money on the interest that you’ll pay. Therefore, getting a student credit card and paying it off in full every month isn’t necessarily the best thing to do. It’s generally a good idea to pay more than your minimum payment each month to show that you aren’t neglecting the balance all together. Leaving a small balance shows lenders that you aren’t opposed to paying a little bit of interest each month. Don’t run your card up to the limit, or that will make lenders think that you can’t handle having available credit without spending it all.
You want to look as responsible as possible without keeping the credit card company from making any money. A good rule of thumb is to not run your credit up over 50% of your total credit line. Shop around for good rates on student credit cards, but don’t fill out too many applications. Apply for the ones that you believe to have the best percentage rates and the least amount of fees. When you fill out a lot of applications, they appear as inquiries on your credit. This isn’t bad unless it’s a lot. This makes you look like you’re desperate to get a lot of cards. Lenders may see that as an irresponsible move, or decline your request based on the fact that you may have a lot of other cards in route to you.
Paying all of your bills on time will help you when you go to buy a house. This includes cell phone, electricity and even cable bills. These bills, however, won’t affect your credit because you’re paying for a service, not paying off borrowed money. Paying your credit card bills or loan installments is very important. These payments will be on your credit and your payment history for each will be looked at for years to come by prospective lenders and banks. Don’t neglect to make on-time payments to anyone that you’ve borrowed from, even if that means paying your power bill a little late. Credit cards and loans should come first when you pay your bills.
Getting student credit cards can help you establish a good credit score if you treat them with respect. Responsibility is key. Keep these guidelines in mind and you can have a good credit score in just a few short months.

About the Author: Mary Wallace, a retired teacher, is the editor for studentcreditcards.com, a provider of student credit cards and information plus consolidation of student credit cards. For more information, please visit http://www.studentcreditcards.com