Student Credit Cards |
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Back To Main: Loan Applications Student Credit Cards can be very convenient. They can teach you better money management skills. If you work hard you can start building a solid credit score. Students can also avoid carrying around cash. Student Credit Cards generally have low interest rates, but they might have a smaller maximum credit limit.
Colleges and universities are make money out of the Credit Card industry without bearing any responsibility for educating the students about the possible pitfalls and the devastating effect bad credit can have on their financial future. In return for lucrative fees, many colleges allow the banks and Student Credit Card companies to hawk their Student Credit Cards right on campus. College students, attracted to their first Student Credit Cards by offers of free t-shirts or cool pictures on their cards, often find themselves with large, unmanageable debts, consumer experts warn. One recent study found that college students routinely get Credit Cards without ever proving that they have any income. They often rack up thousands of dollars worth of debt and end up quitting school to work full time just to make minimum monthly payments. Some students use their Student Credit Cards with abandon, planning to pay off their debt when they land that great job after college. Indeed, they forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt. One college student recommends selectivity. "Don't sign up for Student Credit Cards that charge an annual fee, and read the terms of the card before applying. You wouldn't believe how many people don't know what an APR rate is." Companies offer students "teaser" interest rates of 5 to 7 percent and quickly increase them sometimes as high as 20% or even more for those who miss payments or receive cash advances. If you misuse your Student Credit Card and keep making late payments, you will be under a huge debt burden when you graduate and need to buy a home or a car. Student Credit Cards are not student loans. Consider them as high interest loans, which you should pay off immediately. There is much choice for students when it comes to selecting a card. The first thing when choosing Student Credit Cards is to find one with a low APR. Many Student Credit Cards will even allow you to accumulate points from your purchases which you can redeem for DVDs, books, CDs and other cool rewards. By properly managing your payments, you can have a good credit score when you graduate. If you make your payments on time, you can also avoid the interest charges. Be careful of the late fees on your Student Credit Cards. Online applications have made it very convenient to apply for Student Credit Cards. In addition the Internet can let you shop around from a wider selection of cards right from your home. Usually it is a secure way to apply if the online site has a secure server. You can qualify for Student Credit Cards if you are at least 18 years of age. |
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