8 Things Credit Card Holders Must Be Aware Of

Consumers have so many things to learn about credit cards. Not only should they be well-aware of the different types of accounts, they also need to be knowledgeable about the basics of credit management as well as the importance of building good history. Why are these things important?

Well, they can help first-time cardholders in choosing and in managing their very first credit cards. And aside from this, their basic insights about charge cards can also help them avoid committing costly mistakes as they apply for different programs.

Now what basic information about these plastic cash should all consumers, especially students, must be well-aware of? Let us discuss some of them.

Eight Things You Need to Know Your Cards

1. There are various types of programs. Some people think that all cards are one and the same. But this is a misconception. They may have the same shape and size but they do not carry the same terms, conditions and features. For example, a student credit card possesses different characteristics and features from the ones present in bad credit programs, like secured and prepaid debit cards.

So before applying for a particular type of credit program, make sure that you are well-aware of all the card programs that are available to you. You will be more likely to choose the right program if you know exactly what options are being offered by various companies and issuers.

2. They carry a variety of features. Features include the interest rates, credit limits, payment terms, fees and charges as well as other credit conditions. These are the things that you compare as you try to find the program that will be most suitable to your needs and expectations.

As was mentioned above, different credit cards possess different features. So, what might be offered in student cards may not be present in the fine print of secured or prepaid cards. And the interest rates carried by most unsecured cards may not be equal to the those charged in secured accounts. This goes to show that you have to be keen in shopping and comparing different features. In so doing you can surely find the program that will work to your advantage.

3. Charges are billed every month. After you get approved for your very first account, you must remember that there is more to credit card billing than receiving a mailed billing statement every month. Thus, you must try to understand the billing process of your selected company. This way, you can easily grasp what and how your credit card issuer charges you each month.

4. Payment of fees and charges required. Issuers generate profit from the fees, penalties and charges that they impose on the programs they offer. So, when you apply for an account, expect that you will be asked to pay several fees and charges before you can use your own card.

5. Choose your program wisely. You should remember to take your time in shopping and comparing the features and terms of the cards you intend to acquire. In so doing, you can choose the right student credit card account that will certainly meet your expectations.

6. Be diligent and persevering. If this is your first time to build your history, your card will be the key to establishing your credit reputation, then you need to be diligent and persevering in conducting researches prior to your card application. You also need to display a great deal of patience especially when you get turned down for the program you are applying for.

7. Pay your bills on time and in full each month. No matter what cards you intend to get, make sure that you always pay your bills on time and in full each month. These activities will help you maintain excellent credit ratings that will eventually increase your chances of getting approved for the credit accounts you will be taking in the future.

8. Resist the urge of making multiple applications. Applying for too many cards can cause a negative effect on your standing. This can inflict damage to your rating and can reduce your chances of getting approved for your next application. This is why you need to fight the urge of getting too many credit lines. Instead you need to be contented with the ones you already have.

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Effective Financial Strategies for Students In College

Going to college can bring many privileges but along with that, comes the responsibilities. If you are about to enter college or has just started your freshman year, this article presents useful tips on money management and financial strategies for young people. 

On Money Management

Use your student credit card for schooling purposes. A student credit card is a great tool for building credit history but if used incorrectly it can also you to bad credit. Therefore, make sure that all your charges are officially for your education. More importantly, you must make sure that you will be able to pay back your balance in full before your due date ends. This way, you can avoid the interest rate fee and protect your credit history as well. 

For non-schooling purchases, use cash. If you want to reward yourself with a new gadget or a new pair of shoes, do not charge it on your credit card. Instead, save your cash and wait until you have saved enough to buy that item.

Keep track of your own spending. Train yourself to become financially responsible by monitoring your own spending. A lot of student credit cards today provide an Online Account Access which means you can check your account from your computer at anytime. Check if there are unfamiliar purchases reflected in your account. If there are, call up your issuer right away to correct those charges. 

If you notice that you’ve been using a large percentage of your credit limit, then put yourself in check and do the necessary adjustments. For instance, you may strictly keep yourself from using your credit card on new purchases until you manage to completely pay off your balances.

Create a budget plan. Based upon your monthly allowance, create a realistic plan to make sure that your budget is properly distributed according to your expenses. Be sure to set aside your bills payment and some amount for your personal savings. Having a written plan will enable you to see where your money goes so that splurges or unplanned purchases can be avoided.

Keep financial records in a safe place. After checking your monthly credit card statement, keep it in a safe place as you may be able to use them for reference in the future. Aside from your credit card bills, be sure to keep purchase receipts and other important financial documents.

Protect your personal information. College students are not exempted against the threat of fraud and identity theft. Educate yourself about the strategies used by identity thieves so you can be alerted against their tactics. Be cautious about giving away your personal information especially your Social Security number, credit card account numbers, etc.

Be frugal. There are many ways on which you can be smarter and save money. For example, you can check out used or second-hand books at a cheaper price instead of buying new ones. Before buying anything, always take the extra time to shop around and compare prices. Never buy anything out of impulse. Wait until you’ve been able to seriously consider whether you really need it. Recognize the difference between NEEDS and WANTS.

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