Establishing credit by using a student credit card is a
great method to prepare for the future. Credit is vital for each aspect of
life, from buying a home to getting a job. Building a good credit history will let
you to get a loan and will help you to prevent many problems people with bad or
no credit face.
Good credit means you have access to money if an emergency
or need arises. Student credit cards are a great first step to securing your
financial future. If you are student then it is sure that you are on a budget.
The following are some of the student credit cards.
Discover Student Classic Cards
Discover Student Classic Cards is one of the credit cards
offered to students. The card is designed to help students build credit and
includes 0% Introductory APR, no annual fees, 5% cash rewards and receive
additional bonuses through the cards program during each year. A 1% cash reward
is offered on all other purchases.
The interest rate of this student credit card is slightly
lower than other student credit cards. This particular card offers 15.74% APR
after the trial. This particular card is appealing since the APR seems to
remain in tact once the introductory trial has expired.
The default charges however reach up to 19.99% and if you
history is lacking it could expand to 26.74%. All cash advances made on the
card is charged the balance + 22.99% APR.
As you can see if you borrow $500 then you will repay around
$614.95, which is outrageous, since you could get a $500 payday loan for less. As
you can see, the cards are more designed to make the lenders money.
The generosity is the 0% introductory, but after that, you
may want to review other cards. You must also be careful and read all the
details about the cards offered to avoid additional charges.
Citi Student Credit Cards
The Citi cards are some of the leading cards offered today.
Citi Dividend Platinum Select Cards are one of the few student credit cards
offered for college students.
The student credit card offers a 0% Intro APR up
to six months and 5% cash rewards on qualified purchases, including purchases
at pharmacies, gas stations, and grocery stores.
There are a 0% Liability on fraud purchases and no annual
fees. The cardholder will also have free online access to their account. College
students should be advised that after the trial period has ended, the APR
increases.
If you have, unpaid balance transfers or debts then the card
will apply the new APR to your debts. This will incorporate any charges on cash
advances. The Variable Rate will increase after the trail to 16.99%, with the
Standard rates being 21.99%.
You must be conscious that the cards Variable rate is
subject to raise to 30.99% on default rates. The finance charges is average
being $0.50, and all purchases in foreign countries will add a 3.0% charge.
Transactional fees on 'cash advances is 3.0%' and the
smallest amount is $5 per charge. Another 3.0% fees are applied to balance
transfers, with the smallest charge of $5 and max of $75.
As you can see this card poses some threats, since if you
fail to make your payments on time you will also pay fees, as well as overdraft
fees. If you apply for the card and find that you can't meet the payments then
you are subject to losing your privilege of the card, and subject to poor
credit ratings.
With this in mind, you may want to ask your self if you are
responsible enough to maintain a stable balance in which you can repay.
Tips For Using The Student Credit Cards Wisely
If you're a student considering getting or already owning a student
credit card, or if you know someone who does, here are some things to help you
get started on learning how to use a student credit card wisely and to manage
finances in general.
- Consider
the nature of your income and how much of it is stable income. Credit card
statements come in monthly. Thus, you should know how you would get the
money to pay for these.
Stable income is vital because you will be relying
on this to make those regular payments. If you don't have a stable income,
rethink getting a credit card. Continuing with one in spite the lack of a
stable income will run you into debt in no time.
- Observe
your credit limit. Unless you particularly ask for it, a credit company
will set the limit for you. To avoid unmanageable debt, your credit limit
should be around 25% of your stable monthly income.
So even if you've
topped off your credit, you'll still be able to pay off the monthly
balance. If your credit limit is beyond 25%, call your credit company
right away and ask for an adjustment.
- Designate
purchases. Credit cards should not be your primary way of payment. It
should only be a means to bridge gaps in your cash flow. As early as
possible, develop the discipline to limit certain purchases for your card.
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