Apply for student credit card
A student credit card can be a very useful tool to getting started on building credit. Spurning credit card offers while in college can cost you a scope at establishing a credit history which is all-so-important after the glorious days in college are over.
Starting out early at credit management has a fair share of upswings. Post-college, you will find that getting credit is a lot easier and the interest rates are more affordable than many of your fellow mates may discover, as a neophyte at credit use. However, credit is a sensitive index which can rise or fall at the slightest hint of misuse or neglect. It can doom your credit standing and that is as despicable as being a non-starter - even worse at times. The key to making the most of your first apply for student credit card earned as a student, is to treat it with adept. Pay bills on time and you could be on your way to building a sound credit.
As a college-student you are likely to be deluged with credit card offers. Picking the one that best suits your budget and lifestyle can be challenging. Thanks to the bewildering, many-fangled allures strewn by the proliferating (student) credit card industry to trap unsuspecting youngsters. Be aware of those trifling gift offers as t-shirts, coffee mugs or Frisbees (and such others) doled out in schools or college campuses by credit card companies to reward those who applied for their card!
Distinguishing features of student credit cards:
Apply for student credit card are generally offered by the same company as the regular credit cards only they operate under different names. There are two important features of student credit cards that set them apart from regular credit cards.
1. No income required credit card:
Student credit cards are unique in that they require no income nor a credit history except the user should be enrolled as a student at a four year university. This makes student credit cards excellent, to start building credit in ones own name provided he is committed to use it responsibly. Most major credit card companies issue student credit cards.
2. High interest rates:
It goes without saying that someone with little or no income and little or no apply for student credit card history is bound to pay higher interest rates. Same with the student credit cards. Relaxed qualifying terms put the credit card industry at a potential risk of incurring losses from non-payments. To offset such dangers the interest rates are fixed higher than the regular credit cards. Thus for a credit limit of $1500 a student can expect to pay interest rates that can average at the mid-teens which is typical.
What to look for when applying for student credit cards:
Credit cards often come with perks. A low introductory rate, cash back on purchases, air miles etc. are to name a few. Before applying for a credit card shop around to make sure that you will be in possession of a card whose interest rates and terms are affordable, not entrapping; and that it secures you against high fees, interests and penalties. It is dangerous to succumb to the fleeting lures of credit card ownership.
Here are some of the major credit card parameters to reckon with:
1. Annual percentage rate should be by far the foremost criterion for credit card selection. Known widely as APRs it determines the cost of keeping balances on credit cards. Many come with zero percent interest rate for the first six months. This is a teaser rate that will expire soon, after which the rates re-adjust to a figure which can be as high as 18% or more on balances. Keep an eye on the APR and shop for the card that offers lowest fixed APRs.
2. Some credit card companies charge an annual membership fee which can range from $25 up to $100. Certain gold and platinum cards can charge up to several hundred dollars in exchange for inconsequential membership benefits. Abstain from cards with fees as there are many out there with low rates and no fees.
3. It is always recommended to pitch for a card with a grace period. The grace period is the time stretch, often 14 days, offered by the credit card issuing company within which the user will not incur interest on balance if paid in full before the due date arrives. Find out if a grace period applies to your card, its timeframe and its influence upon cash advances, if any.
4. Minimize the number of credit cards. Too many open accounts can reflect badly on your credit score. Besides several credit cards can tempt you to overspend and rake up balances that are beyond your financial bounds to repay. It can potentially put you into an unforgiving debt situation.
5. Hold back the enticing credit card offers that come with rewards - free miles or cash backs. Typically, these come with high annual interest rates and fees and you could wind up paying more in fees and interests than you are likely to earn from rewards.
Quick shopping tips:
*Shop around for plans that best suit your needs
*Read the fine print before getting obligated to the credit card terms and conditions
*Preserve receipts of your expenses to verify the accuracy of your bill
*Dispute unauthorized charges on your credit card immediately
*Keep a record of account numbers and phone numbers to report loss or theft immediately
Some popular student credit card recomendations:
Ohio Savings Bank Student Credit Card
*Has a standard APR fixed at 7.9% for Platinum Plus accounts and 13.99% for Preferred Accounts.
*Zero annual fees.
*A grace period which extends up to 20 days.
*2.9% Introductory APR for Balance Transfers and Cash Advance Checks for 12 months. At its lapse the standard APR of 7.9% applies to the balance.
*3% transaction fee for foreign transactions.
This credit card reportedly carries the least annual percentage rate of all the student credit cards surveyed.
Sovereign Bank Student Credit Card
*Has a standard APR fixed at 9.9%.
*Zero annual fees.
* A 20 days grace period.
*2.9% Introductory APR for Balance Transfers and Cash Advance Checks for 12 months. At its lapse the standard APR of 9.9% applies to the balance.
*3% transaction fee for foreign transactions.
This credit card is popular for its low APR.
SunTrust Student
*Has a standard APR fixed at 13.99%.
*Zero annual fees.
*A 25 days grace period.
*1.7% Introductory APR for Balance Transfers and Cash Advance Checks for 6 months. At its lapse the standard APR of 13.99% applies to the balance.
*No foreign transaction fees.
SunTrust student stands out for no foreign transaction fee which is encouraging for a student who plans to go abroad. The grace period is also better than most cards which means more time for a student to payoff balance.
According to Bankrate.com, USAA Savings Bank student credit cards ranks high for carrying low interest APRs and has been consistently on the top for being the least expensive card for students. It has an annual APR of 13.44% which applies to cash advances and purchases with no annual fees. The grace period is 25 days and is ranked as best whether one carries a balance or pays it off in entirety at the end of each billing period.
However, Phillips 66 Rebate card and GTE Visa receives a lot of flak as being expensive and financially draining. It charges a whopping 21.4% APR on purchases and cash advances. The grace period is 25 days and carries no annual fees.
Choice of apply for student credit card is subjective to individual circumstances and preferences. Listed above are some of the pointers that can simplify the credit card application process. However in order to exploit the full potential of this convenient form of plastic money it is paramount to use it discerningly and not stumble into debt. Credit card debt is a burning issue with college students. To avoid such misfortune restrain overspending, pay balances on time and abstain using it for non-emergency purposes. Remember to regard credit cards as a vehicle of convenience for use in limited occasions only and not as a crutch to support your everyday expenses.
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