How To Avoid Being Trapped in Student Credit Card Debt

College students graduate with two types of debts on their hands- student loan and credit card debt. If you are a student, how can you avoid getting stuck in debt, particularly student credit card debt? How can you make the most out of your student credit card without putting yourself in debt trouble? Here are some tips:

Use your student credit card with care. Your student credit card is supposed to provide assistance with your studies. Unfortunately, many students abuse the ease and convenience of paying with student credit cards which results to debt problems. Remember that each time you charge something to your student credit card, it is your duty to pay it back on time.

Not submitting your credit card payments on time or in full can cause you to incur high interest fees and late penalty charges. Therefore, before using your student credit card, ask yourself, “Is this purchase or expense really important for my studies?”. “Will I be able to pay it back in full before my due date ends?”

Get a part time job to cover for your personal expenses. Some students get a part time job while in college earn extra money to help them with their studies. A part time job also enables these students to pay off their student loans even while studying. This way, they wouldn’t be in so much debt when they graduate college.

Budget your monthly expenses. Even if you have a student loan and a student credit card to help you with your expenses, it is only wise to create a monthly budget plan and stick with it. How much do you need to spend for the whole month both for your studies and personal needs? If you have limited cash, you may need to make adjustments on your lifestyle instead of charging everything to your student credit card.

Don’t wait for things to go from worse to worst. If you notice that you’re having a difficult time budgeting your money and keeping up with your debts, don’t be afraid to get help. Seek advice from a legitimate credit counseling agency. A credit counselor should be able to help you manage your money efficiently and overcome debt problems.

Nevertheless, it’s important to make sure that you’re seeking help from the right credit counseling agency. Some credit counseling services may offer you false help or unnecessary advices that can worsen your debt problems.

Pay your student credit card balance in full each month. You may be tempted to pay only the minimum payment on your student credit card but this also means incurring high interest rates and would take you a longer time to complete your payments.

Paying off your credit card balance completely each month is crucial in overcoming and staying away from debt. This habit protects you from additional interest rate charges and late penalty fees. It also minimizes the risk of building up debts in your account. More importantly, it keeps your credit score and credit history in excellent standing.

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How a Student can Stay Away from Student Credit Card Debt

Having a credit card makes sometimes a students becomes irresponsible and get trap from debt. Find out how to avoid and be prepared through this article.

As a college student, you may agree that life is not easy all the time. Aside from the challenges of dealing with peers and professors, passing exams, and keeping up with the daily school activities, financial issues can also add to the pressure. Many college students today find themselves confronted with the burden of debt on their shoulders.

According to surveys, students with bad credit all have one thing in common – unpaid student credit card debt. According to the Consolidated Credit Counseling Services Inc. 40% of college students get at least one student credit card on their freshmen year, while 20% apply for student credit cards while they’re in still high school.

True, getting approved for a student credit card is fairly easy and owning a student credit card does have its advantages. Unfortunately, most students with credit cards don’t know how to handle their student credit cards correctly. A study conducted by Nellie Mae, a leading student loan lending company, reveals that in 2001, 83% of undergraduate students own a credit card- each with existing balances that amount to $2,327 on average. Imagine how difficult it could be for a student to pay off a credit card balance of $2,000 in full.

Surviving Student Credit Card Debt

Are you a student yourself? The best thing to do to avoid student credit card debt is to handle your student credit card with caution. Financial experts agree that student credit cards can be a great tool in building your credit history. But don’t let the convenience of a student credit card lead you to overspending and eventually, bad debt.

What every student must realize is that each time they use their student credit card for a purchase or for a charge, he or she has the obligation to pay it back on time. Other students may reason out that they have the option to pay only the minimum payment required and carry over their balance for the next billing period. But such reasoning can easily lead to unmanageable debt. Remember, if you carry over your balance from month to month, you incur the high interest rate charges and you increase the risk of building up debts in your account. That is why, all credit card holders – not only students – are advised to pay off their monthly balances in full at all times.

Parents also play a big role in helping young people understand their obligations as new credit card holders. In choosing a student credit card, you can work with your teen-ager and guide them with their choice. You may share your own experiences as a credit card owner as well. You may also recommend a particular student credit card that you think offers the better deal. Encourage your kids to read the credit card’s Terms and Conditions in full so that they can personally understand what they’re signing up for. Emphasize the importance of building a credit history. Teach your kids how they can take care of their credit and keep it in a good or excellent status.

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How To Cancel Your Student Credit Card

Many students fall into the trap of credit card debt. As soon as they enter college, these students apply for multiple student credit cards and get approved right away. The problem comes with how students handle their student credit cards. Unfortunately, overspending is too easy when you have all those credit cards in your wallet.

But worse than using all these credit cards, students often fail to make payments on time. They either forget or neglect their due date payments or they choose to submit only the minimum payment and carry their balances from one month to the next. The result? They incur high interest rates, late penalty fees, transaction fees, and other additional costs in their account until debts go out of hand.

For this reason, financial consultants advise students not to get too many college credit cards in their account. One or two student credit cards should be sufficient to be used for your student expenses and the other for emergency purposes. But what if you already have multiple credit cards in your name? What can you do about them? Is it possible to cancel these unnecessary credit cards?

How to Cancel Unwanted Student Credit Cards

Canceling a student credit card carelessly can bring damage to your credit history. That’s why very important to consider each step before making your final decision and cancel a credit card. First of all, never cancel a student credit card if you still have an unpaid balance with it. If you really want to cancel your card, you need to completely pay all your charges first before canceling.

Don’t just cancel any of your student credit cards, especially the old ones. If you’ve had that student credit card for a long time, you’ve already build an important part of your credit history with it. Therefore, canceling that student credit card would be like deleting the oldest part of your credit history. If you need to cancel a student credit card, choose the ones that you’ve acquired more recently.

But what if your old student credit cards come with very high interest rates? You still want to keep those student credit cards to protect your credit history. Remember, if a card has a high interest, you don’t have to use it frequently. You may use it once in awhile for small purchases just to keep that credit card from automatically closing. To avoid the high interest fees, pay off your entire balance before your due date ends.

Once you’ve examined the student credit cards you want to cancel, the first thing to do is call your credit card issuer. The representative you’ll speak may try to convince you to keep the credit card, but if you’ve already made your decision, don’t let a credit card representative change your mind. Be sure to note the name of the representative you spoke with. Next, send your letter of request to your credit card company as a follow-up. Remember, you should make it very clear that you are personally requesting the cancellation, not your credit card issuer.

After receiving notice that your account has already been closed, check your credit report immediately. Make sure that it does not say that your account was closed by your credit card company. This can happen sometimes, and if it does, call your credit card company to clarify the issue. You may need to wait up 30 days before the matter is corrected. Re-check your credit report and if the issue still hasn’t been resolved, send a dispute letter to the credit bureau.

Prevent Identity Theft on Campus Using Student Credit Cards

Crime and frauds are everywhere even a student is not excused. This article is about how a student credit cards can prevent identity theft on campuses.

If you’re a college student with a credit card, one of the things you should be aware of is how to take care of your identity and avoid being a victim of identity fraud or credit card theft. Living on a campus can prove to be a big challenge. Surveys reveal that thousands of cases of identity theft are reported each year and most of these cases are from college campuses.

Being a victim of ID theft or credit card fraud is certainly no joke. You could be expected to pay for debts that you never owed. And although most student credit cards have a liability protection program, credit card fraud can badly damage your credit history. Clearly, the best way to protect yourself is to prevent it from happening. How? Here are some important reminders for you:

Log out completely from when using public computers. Whether you’re in a school campus or an internet shop, never forget to completely log out of your account after using the computer. It is also recommended to delete the cache, cookies, and history from the temporary internet files of the browser you’ve used.

Don’t give away your credit card information. Don’t trust anyone with your credit card number or any other personal information either in person, online or over the phone.

Be particularly cautious when filling out online application forms. Make sure that you are using the genuine website of the company you’re applying for and that the site is using a secured server. Check if the URL of the site begins with https:// which indicates a secured site. See to it that there is a padlocked icon on the bottom right corner of your browser.

Don’t bring all your credit cards and important IDs in your wallet. Your wallet can get lost, misplaced or stolen. In any case, having all your credit cards and IDs in your wallet all at once puts you at a greater risk. Bring only one student credit card that you can use and at least one ID for identification. In case of lost, call your credit card issuer at once to have your credit card blocked.

Shred bank receipts and important documents. Don’t throw ATM receipts in the trash without shredding them into tiny pieces. The same is true for your bank statements, old credit cards, and other documents that bear your personal information.

Keep an eye of your student credit card at all times. When shopping or dining at restaurants, be alert when using your student credit card for payment. Never take your eyes of your credit card. Remember that “skimming” can be done within just seconds without your slightest hint. Volunteer to take your credit card to the cashier and never take our eyes off your card even for an instant.

Use strong passwords. It’s better to use passwords that are not related to your personal information. Identity thieves often try out birthdays, surnames, anniversaries when hacking accounts because people use them for passwords most of the time. A combination of letters, numbers and at least one symbol is a lot more difficult to decode. Be sure that you keep a list of your passwords in a log book stored in a safe place.

Credit Cards for Teenagers

For young people, turning 18 is a big event in life where major changes happen. For one, a teenager would soon enter college to pursue higher education. Some teenagers would leave their parent’s homes and go to a boarding school while others may go to a college in another state or country. All these changes present different challenges to a young person.

Young People and Financial Challenges

When it comes to financial matters, turning 18 and going to college is a teenager’s chance to own his/her first credit card. In the past, most credit card issuers require a co-signer to open an account but today, you can apply for a student credit card without the need for a co-signer.

However, being able to get a student credit card so easily may also have its disadvantages. If you’re a college student, you may receive dozens of offers from various credit card companies and all may promise to give you the best deal. It could be tempting to sign up immediately with the first attractive offer but doing so could be a very dangerous move.

Signing up for a credit card without first considering your options can result to problems later on. For instance, you may soon find yourself stuck with a student credit card that has high interest rates and fees. Thus, if you’re thinking about applying for a credit card, you should be willing to take some time in carefully studying your options.

Remember, you can learn about the real costs and terms of a credit card if you read its entire Terms and Conditions. Otherwise, what you read from the ads could mislead you into signing up for a student credit card that has unreasonable terms.

Prepare Yourself for the Responsibilities

Are you ready to be a credit card holder? Bear in mind that owning a credit card isn’t just about the freedom to make purchases without cash or the flexibility to pay for your expenses at a later time. Being a credit card holder is also about being true to your obligation to pay off your debts.

Once you get approved for a student credit card, use it as a financial aid to your education. Before you charge any expense on your card, don’t forget to analyze the situation. Ask yourself:

• Is this expense really important?
• Will it help me with my studies?
• Would it be better to pay for this purchase in cash instead of charging it to my card?
• Can I afford to pay off my balance in full for this month?
• How do I plan to pay back this particular charge?
• Am I exceeding my credit limit?

Credit cards for students are meant to be used as tools in building your personal credit history. You should know that you can only build a good credit history by acquiring credit and by being responsible in handling debts. Owning a student credit card should train your money-management skills and your ability to discern good debts from bad debt.

How to Choose a Student Credit Card?

If you plan to apply for a student credit card, this article is for you. Have you done extensive research about the different student credit cards offered in the market? Did you take your time in exploring your options? Do you think you’ve found the student credit card that matches your needs?

Let’s discuss some important questions that you need to consider when choosing a student credit card. Before making your final choice, check out the following points:

It offers 0% APR- a great deal, right?

Yes, a low interest rate is very important. However, don’t base your choice on the interest rate alone. Just because a student credit card has 0% APR doesn’t guarantee a great deal. Some cards may promise a low interest or zero interest for at least the first 3 months or 12 months, but how much would the regular rate be after the introductory period?

You may be surprised to find that the card has a much higher rate than other cards. Thus, before signing up for the 0% offer, don’t forget to check out the rest of the fees and the terms that applies with your chosen card.

Do I need a co-signer to be approved?

Some credit card companies require students to have a co-signer to sign the agreement with them. This means, in case you fail to keep up with your debts, your co-signer would be personally accountable to pay for them. A co-signer must have a good or excellent credit history. If your parent or relative enjoys good credit history, you may ask them to cosign for you.

Nevertheless, some student credit cards do not require a cosigner. Even without credit history, a student can already be approved for his own credit card account. In fact, these cards can be used as tools for establishing your credit history.

Take note, that student credit cards usually provide a low credit limit for their holders. Since you haven’t yet established your credit history, you are still considered as a risk for lenders. Once approved however, you can request your credit card issuer to raise your credit limit if your record proves that you’ve been a good payer in the past months. Some companies would automatically increase your credit limit if you’ve been consistent with your payments.

Have you read the fine print?

Some consumers don’t even bother to read the credit card agreement thinking that it’s just a waste of time. True, reading the agreement can be inconvenient especially when the document is so long and written in such small printing. But examining the fine print is definitely worth it!

Don’t just rely on what the ads tell you. The real terms and conditions of a credit card are in the contract. For instance, a card may offer a low APR but it could carry an expensive annual fee and late penalty charge. Remember, if you won’t read the agreement, you wouldn’t know the complete information about it.