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UNDERSTANDING STUDENT CREDIT CARDS
Using a credit card while in college has many
benefits. However,
finding the right credit card for
your needs is not always so easy. Below is information
that will help choose the right student credit card
offer.
Two Types of Student Credit Cards
Those with an established credit history should
apply for a regular credit card. However, if you have no
credit, then you should consider a secured credit card.
These types of credit cards require a deposit that is
roughly the same amount as the card's credit limit.
Secured cards also tend to have higher interest rates.
There is also an annual fee associated with these card
types.
Know What the Interest Rates and Fees are Before You
Apply
Every single credit card on the market has an
interest rate. However, most card offers will have an 0%
introductory interest rate that can last anywhere
between 3-15 months. Please note that if you carry a
balance on your credit card or fail to make a payment,
you will lose the introductory rate. Once the
introductory rate is over, the interest rate you receive
will depend on what your credit rating is. Typical
interest rates for student credit cards range between
8-19%. It is also very common for college cards to have
fees attached to them, sometimes more than one.
**Before you commit to any student card offer, make sure
you understand what all of the fees and rates associated
with the card are. A good idea would be to
compare
student credit card offers before you apply.
What Kind of Rewards Are Being Offered?
Almost of the student credit card offers available
have some type of reward associated with them. Rewards
usually include DVD's and CD's, free movie rentals and
tickets, discounts on books and clothes, cash back and
more! There are several student card offers designed
towards drivers and the points you earn as a result of
card use go towards the purchase of a new or used car!
The reward rate for student credit cards is typically
one point for every dollar your charge with your credit
card. It is common for credit card companies to offer
different reward rates for the different types of
purchases you make. Meaning, you will get one point for
every dollar you charge, but you can also earn as much
as five points towards card related purchases.
Get Rewarded for Good Grades
Several credit card offers reward student for good
grades. For example, if you maintain a B average, you
will be rewarded 2,000 point for the semester. So, you
can earn an additional 4,000 points if you maintain a B
or better for the year!
Build Credit!
Most student credit card offers are designed to help
student develop good credit if they practice
smart credit card use.
Make sure you make your payments on time every month and
try not to carry a large balance so that you can
minimize the interest costs. Remember, before you commit
to any credit card offer, compare the various types of
available
student credit cards so you get the best card
for your needs.
Related reading
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co-signing student mortgages
-Auto
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