Not All Student Credit Cards Are Alike

Category: Finance, Credit.

If you are student who has just learned how to drive a car or is headed off to college, most of you may not have been given access to your parents credit cards. Believe it or not, getting a new student credit card in your name is relatively easy- even if you have minimal income, no co- signer and no credit history.

But college student credit cards may provide a solution for young people in need of credit anyway because building good credit with student credit cards may be more beneficial in the long run than borrowing your parent s credit card. To get your own student credit card, just follow these simple guidelines. If you don t already, consider part- time work around campus on in your neighborhood. Get A Job. It can be for only a few hours a week on campus. Having your own checking and savings account at a local bank or credit union is also a good idea.

If you re going to have your own student credit card, you ll need to make payments on a monthly basis. Most banks have special student accounts that require a very little deposit to open. Surf the Net. Establishing a history at the bank and accumulating some savings, will give you more opportunities for credit in the future. As a college student, you probably have been bombarded with offers for student credit cards. Or, you ve seen those annoying credit card applications that always fall out of your new textbooks.

Maybe you ve opened your mail to find a fake credit card inside with your name on it. You may have also seen credit card representatives with booths set up on your campus giving away free t- shirts and hats to those who complete an application. The Internet is one of the best places to comparison shop for credit cards. Don t take the first offer you get, shop around for the best value. Read the Fine Print. Not all student credit cards are alike.

Beware! Some may have really cool designs that you can pick, such as college logos, sports teams or graphics that act as an extension of your personality. APRs can vary from 0% to 29% ; annual fees$ 0- $50. But as the saying goes, "don t judge a book by its cover. " Although all college student credit cards provide you with cash in the form of plastic, they can vary greatly by a number of factors: credit line offered, annual percentage rates( APR) , annual fees, cash advance fees, late fees, over- limit fees and special perks. Late and over- limit fees can be as much as$ 30/ month, each. Pick the card that offers you the lowest APR and fees.

Before you sign on the dotted line, carefully read the terms and conditions of the student credit card, especially the fine print. Use It( Wisely) Or Lose It. Before getting your student credit card, be sure to understand everything about credit. Many Americans, are in debt, including college kids over the heads. Credit cards make it easy, to go on, and tempting a spending spree. High interest rates, late fees and over- the- limit fees can cause your monthly balance to get way out of control. But spend more on your college student credit cards than you make you ll quickly find yourself drowning in debt.

If you can t pay your bills, your credit history will be destroyed. Once you have a job, savings and an, a bank account understanding of what credit is all about, you are ready for your first student credit card! Bad credit can keep you from getting student loans, purchasing a home, buying a car. even getting your dream job. If you ve done your homework, then you can be confident that you will select the college student credit cards that will help you to establish your credit. Spend wisely and reap the benefits of a good credit history.

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