Credit Cards for Students

How To Avoid Being Trap in Student Credit Card Debt

2009-10-28T23:34:00.000-07:00

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.

Recommended Resources:

- Credit Cards for Students
- Student Credit Cards Articles

How a Student can Stay Away from Student Credit Card Debt

2009-10-05T04:56:00.000-07:00

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.

Recommended Resources:

- Student Credit Cards Reviews
- Student Credit Cards Articles

How To Cancel Your Student Credit Card

2009-09-09T05:16:00.000-07:00

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

2009-08-20T02:43:00.000-07:00

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

2009-07-13T02:44:00.000-07:00

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.

Recommended Resources:

- Student Credit Cards Reviews

- Student Credit Cards Articles

How to Choose a Student Credit Card?

2009-03-17T23:17:00.000-07:00

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.

Recommended Resources:

Credit Cards for Students

Student Credit Card Reviews

Student Credit Cards - A Quick Guide

2008-12-15T23:52:00.000-08:00

By James Hunaban

We all have different credit requirements, and so the credit card companies design various cards to suit. The variant we are interested in here is the student credit card. This card is designed to help any student build their credit rating, and be useful for emergencies, which is ideal for many.

These days a credit card is almost essential for anybody, let alone students, and as such is used for many purposes including making travel arrangements etc. There is a wide selection available, and some students end up with multiple credit cards, and these are the people that are most likely to get into debt problems. The one saving grace is that credit cards for students usually have a fairly low limit, so if they do get into debt, it won’t be too extreme.

A recent study has shown that about 80% of college students own credit cards with a typical balance being around $3500. A worrying thought to ponder is that when many students use their credit cards to buy stuff, they don’t see it as spending real money.

Another worrying trend that has been reported is that a number of students are using their credit cards to top up the money that they have borrowed using student loans.

Do no take the amount you spend on your student credit card lightly. Because if you overspend or miss payments, you will end up paying extra interest, and possibly damage your credit score. This might not seem too important to you now, but trust me, it will be a pain later on in life, as it will cause problems when you come to get a mortgage or auto-loan etc. Don’t ask me how I know.

So, I will sum up by saying that a student credit card can be a very handy tool to have in your locker as you work your way through further education. Just use it responsibly and be aware of the dangers. Also, do some research, there are some good deals out there.

Dealing with a stolen credit card

2008-12-10T03:20:00.000-08:00

Stolen credit cards involves fraud and theft. Find out how to be more cautious in using your student credit cards to avoid being stolen.

It is true that a student credit card is a lot easier and more convenient to use than check or cash. Having a student credit card makes it possible for students to make purchases online, make online ticket reservations, earn rewards, and build their personal credit history at the earliest possible time.

However, along with the advantages of using student credit cards, there are also some risks involved. In this article, we’ll discuss one of the most common dangers that threaten student credit card holders- the threat of fraud due to stolen credit cards.

Losing Your Student Credit Card

Everyone must be concerned about how they handle their student credit cards. Students seem to be more prone to lost or stolen credit cards because they’re the ones who are often more relaxed or complacent in handling their cards.

If you’re a student who lives in the boarding school or apartment, you could be sharing your room with other students. Leaving your things in your school locker also increases the risk of your credit card being stolen. Carrying your student credit card in your wallet also leaves you more prone to loss or theft.

What would you do in case your credit card gets lost or stolen? How should you deal with that kind of situation? Are you aware of the steps you should take to protect your account? Below are some tips on how to handle a lost student credit card:

Call your credit card issuer right away. If you discovered that your student credit card is missing, the best thing to do is call your student credit card company immediately. Alert them about the lost of your card. Request that your account be blocked immediately to prevent the thief from using your card.

Know your student credit card’s terms. Are you aware about your credit card’s policy on lost cards? Some credit card companies impose a $50 liability protection for unauthorized charges. Thus, in case of unauthorized charges in your account, you would only be paying $50 regardless of the amount of the unauthorized charges. There are also student credit cards that provide a $0 liability protection which means you won’t have to pay anything at all for unauthorized charges.

Alerting your company about the lost of your card at the exact moment eliminates possible problems. But what if you never lost your student card yet someone has been using your account without your permission? You credit card company may send you a notice regarding unpaid charges in your account which you’re not even aware of. In this case, you have the right to dispute the charges.

Call your student credit card company and inform them about your concerns. Follow up your complaint with a letter of dispute, sent via registered mail. Your letter should clearly explain why you think the charges are incorrect or fraudulent. Upon receipt of your letter, your student credit card company would conduct an investigation on the matter. You should also request for a card replacement if you suspect the possibility of identity theft.

Things to Look For In Applying For Student Credit Card

2008-12-04T00:49:00.000-08:00

When applying for a student credit card, we often hear the advice to take your time in studying your options. But what are the things you should look for when choosing student credit cards? How can you make sure that you’ll pick the right one out of all the many choices you have in the market? Here are specific factors you should consider:

The APR. Most student credit cards offer 0% APR is part of their introductory offer. The 0% interest rate may only apply either to balance transfers or purchases while other credit cards may offer 0% APR for both balance transfers and purchases.

If you’re not going to transfer anything to your new student credit card, then go for one with a 0% APR on purchases. Nevertheless, don’t forget that the zero percent interest rate is just a temporary offer. It can last from 6 months up to 12 months depending on the credit card. Always check how much the APR would be once the introductory offer ends.

Other Charges. The APR isn’t the only cost you should consider when choosing your student credit card. Other charges like penalty fees for late payments and exceeding credit limit; annual fees and processing fees are all part of your student credit card bill that you should be aware of. Remember that a low APR doesn’t always mean that you found the best credit card for student. Make sure that all the fees are within a reasonable range.

The grace period. The grace period is the allowable period before you are charged with interest on your purchases. Some credit cards for students give as long as 30 days of grace period which gives you enough time to repay your balances in full without paying for additional interest. Thus, this particular factor is very important in a student credit card.

The perks and rewards. After considering the rates, charges and grace period, you may choose a student credit card based on the type of rewards it offers. Some student credit card rewards program give you cash rebate points while some student credit cards offer gas bonuses and discounts. Choose the one that will best fit your lifestyle.

The terms and conditions. The complete information about your student credit card can be found on your application form- whether you’re applying offline or online. Before signing up for a credit card, don’t forget to take the extra time to read this document and understand all the terms and conditions of your student credit card. If there are certain clauses that you don’t understand, call the credit card issuer and inquire about it.

Your convenience. Another factor to consider is your convenience on using your student credit card. Is the credit card accepted in a wide range of establishments and companies? Or will it limit you to just a few selected establishments? Also, choose a credit card company that reports to the major credit bureaus to assure the accuracy of your credit report.

Online access to your account. It is also recommended to choose a student credit card that allows you to access your account online at anytime. As a student, you’ll be busy with lots of school work and activities and it will be a tremendous help if you can keep up with your credit card account and payments right from a computer.

Common Student Credit Card Mistakes

2008-11-20T18:50:00.000-08:00

Some people have the negative notion that owning student credit cards lead to bad credit. This is because many students have been prone to credit card debt and some have even resulted to bankruptcy. But owning student credit cards doesn’t have to be a bane if you can avoid these student credit card mistakes listed here:

Signing up for the first college credit card you see. There are many college credit cards to choose from but most often than not, a student simply signs up for the first offer he or she receives. You may have received an attractive credit card from your mail or email. But when applying for your first credit card, you should do all the necessary research about the details and terms of your chosen card. If not, it is possible for you to get stuck with a student credit card that imposes unreasonable rates and charges.

Using up your credit limit in full. This is another common mistake that students make. Every credit card holder is given his own credit limit which he can use when using his credit card. However, this doesn’t mean you should maximize the entire allowable credit limit you are given. You should be aware that maximizing your credit limit leads to penalty charges and increased in rates in your account.

Not paying your bills on time. A student credit card debt is meant to be paid off on or before its due date. Untimely submission of payments is the number one cause why many students fall prey to bad debt. As a student credit card holder, you should always be aware of your payments and religiously keep up with them. In addition to this, untimely payment creates a negative impact on your credit report. Therefore, in order to maintain an excellent credit standing, you should never allow delays or misses in your credit card payment.

Using your student credit card on all your expenses. Credit cards for students are supposed to help you with your school expenses especially during inconvenient times. But this doesn’t mean you should get in the habit of using your student credit card for paying restaurant bills each time you eat out or when partying with friends. When you own a credit card, you should be more aware and responsible in how and where you spend your money. Bear in mind that everything you spent using your credit card is a debt that must be paid on time.

Not taking care of your student credit card. Another mistake that students often commit is being too careless in handling their cards. Leaving your credit card where other people can easily access it or copy the details such as your student credit card number puts you at great risk of fraud. Many students have obtained unauthorized charges in their credit without their knowledge because they have failed to be more cautious with the use of their student credit cards. If you own a college credit card, you must be more vigilant in handling it.

Before choosing a Major...

2008-11-10T00:56:00.000-08:00

Choosing a major is sometime difficult especially when you are choosing more than one course. But sometimes you may be very fascinated in a major, you find that you don't have enough skills to pass the required courses. On the other hand, you maybe have a skill in a particular field, but you have no interest in that area. Sometimes, you may have both interests and abilities in an area but find that the realities of the job market are such that you are not willing to risk an investment of time and money on potentially bleak employment chances.

Here are the questions you need to ask yourself before you choose a major!

-What are my interests and what fascinates me?

-What are my motivations?

-What are my abilities and capabilities?

-What are the realities?

List of Majors:

* Majors in Arts and Humanities

* Majors in Business

* Majors in Criminal Justice

* Majors in Education

* Majors in Engineering

* Majors in Health & Medicine

* Majors in Game Design

* Majors in Science

* Majors in Social Science

* Majors in Technology

A Practical Guide on Student Credit Cards for Beginners

2008-11-05T01:06:00.000-08:00

Are you a student about to enter college? If yes, have you thought about getting your own student credit card? Perhaps you may think that having a student credit card is not in your list of priorities. Some people may even have a negative impression about credit cards for students, thinking that owning a credit card will only put the student at risk of debt.

It is true that having a credit card involves responsibility. However, when used correctly a student credit card actually has its advantages. Here, we’ve listed the major advantages of owning a student credit card that you should consider:

Get approved for a good credit card deal with no hassle. Generally, the best credit card deals in the market require good to excellent credit. An applicant must also have a stable job or a reliable source of income in order to get approved.

This is not the case for student credit cards. In fact, this would be the only time you can apply for a credit card without worrying about these requirements. Once you’ve graduated, you will not be qualified to apply for a student credit card any longer.

Build your personal credit history early. Having a student credit card is a tool for building your credit history. Why is it an advantage to have an early credit history?

Lenders and insurers have more confidence in clients who have a clean record of credit history. Thus, the older your credit history is the better candidate you would be in the eyes of lenders. It is no secret that the best rates and terms are given to customers with the best credit rating.

Take advantage of the opportunity to purchase online. Purchasing from online merchants is not only more convenient, it is also cheaper. Online shops often sell goods at a lower price compared to regular shops because of lower capital. Enjoy great savings and discounts when you use your student credit card to shop online.

Use a Student Credit Card to Your Advantage

As we’ve said in the beginning of this article, being a credit card holder involves responsibility. It doesn’t matter whether you own a regular credit card or a student credit card- all cardholders must be aware about their obligations to avoid the risk of debt.

To sum it up, there are four rules that a student must remember when using a credit card:

1. Use your student card only for important purchases. Don’t use your student credit card for things that you can pay in cash. Never use your card for an unplanned purchase.

2. Pay your bills on time. Building a solid credit history largely depends on how timely you are with your payments. Be conscious about your payment due dates and always submit your payments on time.

3. Monitor your account regularly. You can do this by examining your monthly bills and accessing your online account (if your credit card company provides online access). Make sure that there are no unauthorized charges in your account and if there are, inform your student credit card issuer right away.

4. Pay off your monthly bills in full. To avoid debt build up, it’s best to settle all your student credit card bills each month. Doing so will prevent you from maximizing your credit limit and frees you from additional costs like the APR and late penalty charges.

Build Your Credit Rating with Student Credit Cards

2008-10-23T00:12:00.000-07:00

Having a student credit card able you to establish an early credit history. This article contains the proper way of building student credit and some practical tips on how to make most of your student credit card.

In the past years, students may have a hard time opening student credit card accounts for themselves. Because they don’t have credit history and no job, credit card companies are hesitant to extend credit for students. Today however, the situation has completely turned around.

The tough competition among student credit card issuers has brought about this great change. And because there is a large number of students who want to own credit cards, issuers simply cannot afford to ignore this market. Saying no to student customers would be letting go of big profit.

The introduction of credit cards for students has made it easy and convenient for young people to get a credit card of their own. Some credit card issuers may still require a cosigner but you can find many student credit cards that do not. Yes, even without a credit history and without a cosigner, a student can get approved without hassle.

In fact, one of the advantages of obtaining a student credit card is to establish credit history as early as possible. If you are in college, this will be the only time you can apply for a credit card and get approved with no questions. Once you’ve graduated with no credit history, you’ll have a more difficult time finding a credit card with good deals.

How to Build Your Student Credit Rating

So how can a credit card help you build your credit history? The only way to do this is to use your student credit card and be consistent with your payments. As a student, you need to be very aware of your spending and credit card use. Having a student credit card in your wallet is not a pass for splurging or overspending. It is up to you to take control over your spending.

The danger in owning a student credit card is the tendency to overspend and failure to keep up with your repayment. Some students are guilty of charging large expenses on their cards or forgetting to pay their monthly bills. As a result, debt builds up quickly until repayment becomes a burden.

To avoid such complications, a student must realize the importance of paying off credit card bills on time. Instead of carrying over monthly balances, it also best to pay off your charges in full every month. This way, additional costs such as the interest rate and late penalty fees are avoided. Aside from avoiding the risk of bad credit, doing so will also protect your credit.

Students must also stay vigilant against the threat of credit card fraud and identity theft. Safeguard your personal information and check your account regularly. Make it a habit to review your monthly billing statements to be sure that there are no unauthorized charges in your account. In case there are unfamiliar charges in your bill, don’t hesitate to call your credit card company right away to clarify the issue. Remember, you can dispute incorrect charges in your student credit card bill especially if you know that you did not make those purchases.

How to Know Your Child is Ready For Student Credit Cards

2008-10-10T01:11:00.000-07:00

By Stephen Sikes

There is a point in every parent's life when they have to let go and allow their child to grow up and start to take on a life of their own. This often comes as a child graduates high school and takes off for college. But as a parent, you may not think they are ready for all of the things they need to know to get by in the world.

One of the important things you need your child to know before you 'let them go' is how to take care of themselves financially. This doesn't just mean making sure they know how to pay their rent and utilities bills, but also that they know how to take care of their credit so they can have a good line of credit throughout their lives.

Often college is when children get their first credit cards. But you may not be sure your child is ready. Here are three steps to getting them on the road to financial independence.

Have a Talk

You need to be confident that your child understands the importance of getting a credit card before you ever allow them one. The best way to assess this is to take a seat and talk credit cards with your child before approving them getting one. Make sure they understand the responsibility that comes with credit cards and that a failure to be responsible could follow them for years to come on their credit report.

Credit Card Light

Before you give them a normal credit card with a high limit, you may want to start a little smaller on the credit front:

Prepaid Credit Cards - You could begin with prepaid credit cards, which are cards that you charge with money, much like an ATM card. These will allow you to see if your child tries to keep going over their spending limits.

Student Credit Cards - Many of the student credit cards out there don't allow too high of limits. The best student credit cards are like starter credit cards that allow you to set the limits your child can charge to, so their credit can't get out of hand, even if they forget to be responsible.

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How To Get Approved For A Student Credit Card

2008-08-27T02:00:00.000-07:00

By Tom Tessin

If you're new to the credit card game, you probably don't have idea on how the credit card market works. Before most people apply for their first card, they don't even think of what kind of cards they can apply for. Most appliers make the mistake of applying for the first credit card they see which is a big mistake because most of the time these cards are designed for people with established credit.

When people start their hunt for a credit card, they never think of the options. If you're going to school, you can be a huge candidate for a college based credit card. A student credit card is made for a student going to college and if you have no credit or you have credit, the chances of getting approved are great. Now, if you're not going to college, you'll want to look elsewhere such as a first time credit card or possibly a secured type credit card.

Now, the question everyone wants to know is how exactly do you get approved for a student credit card? As I mentioned above, if you don't have any credit at all, you're going to be the best candidate. This is exactly what the companies are looking for. They want someone that has no credit at all so they can swoop in and grab them as a customer. They are hoping that throughout your life, you will choose the credit card company that first approved you.

The reason why student credit cards are so easy to get is because companies generally give you a very low limit of about three to five hundred dollars. They figure that if you don't pay off your bills, you will have your parents to rely on since most college students keep in touch with their parents. The process of applying is nothing different than a regular card if you've looked at those applications before. The application requires some personal information such as your address, name, social security number, and a few other questions.

Credit Cards and High School Students

2008-03-14T15:43:00.000-07:00

The Federal law doesn’t provide any restrictions about issuing credit cards to minors. In fact, credit card companies consider teen-agers as a very profitable market. Most credit card companies often require a co-signer when a minor applies for a credit card. When a teen-ager reaches the age of 18, he has the right to sign-up for a credit card on his name even without a cosigner.

Are Student Credit Cards an Advantage?

Some parents feel that providing their kids with credit cards while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.

A student credit card is a great way in establishing a credit history in preparation for their future. Some credit card companies refuse to grant credit card approval for those without a credit history. But with the help of a parent as a co-signer, it will be much easier to get a credit card.

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Teaching Students About Credit Security

2008-03-13T05:39:00.000-07:00

A lot of college students are excited about acquiring their first credit cards. Despite the ease and convenience that credit card brings, it is very important to learn how to handle a student credit card properly. Reports show that a lot of college students graduate with unpaid debts on their account. They have used their student credit cards without control and have put themselves in a difficult situation.

Credit Card Companies Pursue Students

It is interesting to note that some financial experts believe that credit card companies view students as a very lucrative market. Students have the tendency to spend more not only for their school necessities but for other things as well.

Regardless of the fact that college students do not have stable jobs to support them, credit card companies still pursue them as profitable customers. Why? Because even though they cannot pay their debts on a timely manner, credit card companies can still charge them with extra fees such as annual fees, penalties for late payment, penalties for exceeding credit limit, and higher interest rates.

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How Students Can Manage Their Student Credit Cards

2008-03-03T07:32:00.000-08:00

Surveys prove that many college students graduate with unpaid debts on their student loans which can amount to $20,000. Those who are still in college are faced with credit card debts amounting to $7,000 or even more. Even worse, there are many at a young age of 15-25 have already filed for bankruptcy. If you’re a student who owns a student credit card, these staggering surveys should definitely concern you. What can you do to avoid falling victim of bad credit?

Here are some valuable tips you can in your personal life as a student to help you manage your finances wisely.

Make a Commitment

Bad credit usually results from splurging or uncontrolled spending. In order to avoid paying for unreasonably high balances, as a student you should have the will to restrain yourself from spending on things that are not really necessary. Every time you plan on buying, ask yourself, “do I really need this or do I just want it?” If you know that you can get by without making that purchase then, have the will to back out.

Pay Cash

Don’t use your credit card on every little thing you need. When you eat outside or go to the movies, don’t charge it on your credit card. You should change your outlook about owning a credit card. It doesn’t give you the leeway to spend on all the things you want. Always keep in mind that you are still responsible in paying back the charges on your credit card.

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