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| Building Credit for your Students is easy as 1-2-3! |
| Credit Card Guidelines for College Students |
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According to a survey, the average freshman student has more than $1,500 worth of credit card debt. That staggering figure was revealed by Nellie Mae in 2005. Students have a very substantial amount of debt even before they graduate, and become a member of the workforce.
This situation is dire, yet much can be done so this does not happen. Just by teaching students to use their credit cards responsibly, they can protect themselves from the threat of bad debt and in turn build up a solid credit history. In this article, we have presented simple but valuable steps on managing a credit card, especially for young people and college students.
Don’t fall for credit cards with introductory rates. A credit card with a reasonable interest rate that would last is a better option than a credit card with zero percent introductory rate that is bound to skyrocket after only six months or so. Since it will be your first time, you need a reliable credit card - one that can help you establish and maintain a good credit history.
Know what you have to pay for. Aside from a low interest rate, be sure to check out what the other fees are as well. Check the annual fee, late penalty, over-the-limit fee, and other transaction charges that you may incur once you use your credit card.
Credit card rewards. If you plan to get a student credit card with rewards, be sure that you will be able to pay completely every month. Otherwise, you may get charged with a high rate of interest. Better yet, if you’re not sure whether the rules of the reward program fit your lifestyle, go with a non-reward credit card with a low interest rate.
Stick with one credit card. Many young people get at least two or more student credit cards, thinking that more accounts would boost their credit rating. But achieving a high credit score does not depend on the number of credit cards you own. On the contrary, a good credit score depends on how well you can manage each account.
Thus, even if you own just one credit card, if you use it regularly and you are consistent in submitting your payments on time, you can surely build good credit and make a good impression to future creditors.
As a student, it is strongly recommended that you stick with one account to avoid the risks. First, having multiple credit cards may encourage more spending, since you can always charge it to one of your credit cards and pay at a later time. Second, managing different credit card accounts can prove to be difficult especially if you have incurred a balance on each card. Also, paying off your debts can become a burden and if you fail to pay on time, you will be charged with additional fees on interest rate and late penalty, charges. All these trouble can be avoided by focusing on just one card. Additionally, student credit cards often have very high interest rates (that’s what you usually get when you have little or no credit), so stacking up those credit cards also means stacking their interest rates against you.
Spend wisely. Ultimately, avoiding the bad credit trap will depend on your own spending. Before charging purchases to your student credit card, see to it that you will be able to pay on time. Always remind yourself of the possible consequences. And if you’re not certain whether you can pay on time, then do not charge it on your credit card.
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| Student Credit Cards: First Step To Becoming Financially Responsible |
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How do we teach our children, especially teens, to become responsible enough to handle their own spending? Some say that simply telling kids to be financially responsible is enough. However, is it not better to let them experience it first-hand?
One way of letting your children handle their finances is by giving them a credit cards for students.
Importance of Having A Student Credit Card
A student credit card is one way to build credit. This is great for teens since they can establish their own credit history while in high school or college. Credit history is important when applying for a loan or even a job. Having a good credit score will help immediately sends out a good impression to potential lenders and employers. They can also learn some of the basic finance skills they can make use of in the future.
Owning a credit card is convenient for college students, especially those who stay in boarding schools, away from home. With a credit card, they won’t have to always ask for cash from their parents each time they need to pay for something (i.e. projects).
Another advantage of having a student credit card is that students working during summer breaks can. pay off their bills from their personal earnings. This experience will teach them about the value of hard work and frugality.
Read Full Article: Student Credit Cards: First Step To Becoming Financially Responsible |
| Easy Steps When Applying For A Student Credit Card |
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Students, especially those who are in college, sometimes face financial difficulties due to the rising costs of books, tuition fees and materials for projects. It is really expensive to go to college but education is very important.
For college students who work during summer, student credit cards can be of great help. You can use your credit card to purchase items or pay tuition fees when cash is not readily available.
A helpful tip: The best time to apply for a student credit card is now. Why? A New Credit Card Law is passed and will take effect on February 22, 2010. It does not stop students from getting a credit card, however, it makes student credit card application and approval a bit more difficult.
Applicants who are under 21 years old must have a primary card holder. The New Credit Card Law also prohibits credit card companies from marketing their products on campuses or 1000 feet within any campus and even school-sponsored events.
Read Full Article: Easy Steps When Applying For A Student Credit Card |
| Best Tips on Using Credit Cards for Students |
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Based on the 2009 study by Sallie Mae, a leading financing company, the average college student has at least four credit cards yet only 17% of these cardholders consistently pay off their monthly balances.
Although having a college credit card can be advantageous for building early credit history, teenagers must be very careful about how they spend with their student credit cards. The modifications made to the Credit Card Law such as not being qualified for your credit cards for students unless you have a co-signer or proof of independent income are supposed to reduce the number of bad credit cases amongst college students.
If you’re a student who has a credit card, what can you do to prevent bad debt and the effects it can bring? Check out these tips:
Avoid carrying a balance. To avoid debt build up and maintain good credit rating, completely pay off your balance. Don’t be happy with just making the minimum due payment. It can save you a great deal by not paying the rate and additional fees.
Read Full Article: Best Tips on Using Credit Cards for Students
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| Applying for Your First Credit Card |
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If you’re a student, the simplest way to improve credit history would be to get your first credit card. With the changest to the credit card law, it is now a prerequisite to have a co-signer. In this case, your parent or guardian can help you out. However, if you can show proof of your own income, you’ll be able to obtain a credit card for students without a co-signer.
In the following paragraphs, we will talk about tips that you ought to take into account before applying for your first credit card:
Go with a low rate card. Rates of interest vary from one student credit card to the next. Rates can go from 15% to 35%. Look for a minimal APR credit card to protect you from debt build-up in case you have to carry over your balance to the next month. Look out for credit cards that have unbelievably low variable rate. Keep in mind that variable rates can increase at anytime depending on the Prime Rate.
Read Full Article: Applying for Your First Credit Card |
| Credit Building Tips for College Students |
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In the past years, building credit history was easier for students with the help of credit card for students. Under the New Credit Card Law, students can only get approved for their student credit cards if they have a co-signer or if they can show proof of independent income. The amendment of the new law was meant to cut down the number of bankruptcy and bad credit cases among young people.
By co-signing a student credit card account, a parent or an adult can help a youngster choose the right card and give advice on proper management. If you are a student, here are ways on how you can build up your personal credit history without falling in the trap of bad credit.
Choose wisely. Do not sign up for a college credit card for the wrong reasons. Choose a credit card because it has reasonable interest rate and fees, no hidden charges, and fair terms. You may need to take some time comparing different offers from credit card issuers. If you are not familiar with credit cards, ask your parent or someone with good credit history to help you out.
Read full Article: Credit Building Tips for College Students |
| Top 10 Tips for Student Credit Card Owners |
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Owning your first credit card can be an exciting experience. However, being a credit cardholder means more than just easier spending. Remember that you have a responsibility to pay your debts on time and use your student credit card according to the terms of your credit card company.
How can you use your credit cards for students in building good credit history? Check out these top ten tips for you:
Charge ONLY if you can pay it back in cash. To be on the safe side, you need to consider repayment before charging anything to your card. Will you be able to pay back that purchase on time? Do you or will you have the cash to make full payment on or before the due date? If you have doubts, the wise thing to do is to skip the purchase and wait until you have the means to do so.
Read full Article: Top 10 Tips for Student Credit Card Owners
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| How Students Can Manage Their Student Credit Cards |
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Credit Card for Students
Surveys prove that many college students graduate with unpaid debts on their student loans which can amount to $20,000. Those who are still in college are faced with credit card debts amounting to $7,000 or even more. Even worse, there are many at a young age of 15-25 have already filed for bankruptcy. If you’re a student who owns student credit card, these staggering surveys should definitely concern you. What can you do to avoid falling victim of bad credit?
Here are some valuable tips you can in your personal life as a student to help you manage your finances wisely.
Make a Commitment
Bad credit usually results from splurging or uncontrolled spending. In order to avoid paying for unreasonably high balances, as a student you should have the will to restrain yourself from spending on things that are not really necessary. Every time you plan on buying, ask yourself, “do I really need this or do I just want it?” If you know that you can get by without making that purchase then, have the will to back out.
Read Full Article: How Students Can Manage Their Student Credit Cards |
| Teaching Students about Credit Security |
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A lot of college students are excited about acquiring their first credit card. Despite the ease and convenience that credit card brings, it is very important to learn how to handle credit card for students properly. Reports show that a lot of college students graduate with unpaid debts on their account. They have used their student credit cards without control and have put themselves in a difficult situation.
Credit Card Companies Pursue Students
It is interesting to note that some financial experts believe that credit card companies view students as a very lucrative market. Students have the tendency to spend more not only for their school necessities but for other things as well.
Read Full Article: Teaching Students about Credit Security
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| Credit Cards and High School Students |
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The Federal law doesn’t provide any restrictions about issuing credit cards to minors. In fact, credit card companies consider teen-agers as a very profitable market. Most credit card companies often require a co-signer when a minor applies for a credit card. When a teen-ager reaches the age of 18, he has the right to sign-up for a credit card on his name even without a cosigner.
Are Student Credit Cards an Advantage?
Some parents feel that providing their kids with credit card for students while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.
A student credit card is a great way in establishing a credit history in preparation for their future. Some credit card companies refuse to grant credit card approval for those without a credit history. But with the help of a parent as a co-signer, it will be much easier to get a credit card.
Or a Disadvantage?
On the other hand, a young person with a student credit card can also get into trouble. The convenience that a student credit card can bring may lead to uncontrolled spending. With just one swipe of the card, they can purchase an item easily at any time. Eating out in restaurants with friends is also just as convenient. They can easily do so without bringing with them any cash.
Read Full Article: Credit Cards and High School Students |
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