The student credit card interest rate or APR is usually higher than regular one. This is to minimize the risk for the company. The limit is also ranging from $250 – $800. This is very common because most students have not established any credit history. Even though the limit is very low but it still helps students build a credit. A student credit card can be used as a stepping stone to build credit and establish a good credit history. If you can manage your using of the card then you have a chance to get high credit card rating and this is in turn will allow you to get higher loans in the future.
On the other side, if students spend more money with their card, sooner they will be incapable to pay the bill which will affect their credit rating. If the issuer goes after the co-signer to pay the bill, it will also affect co-signer’s credit rating as well. Therefore, students should always aware about their budget before they start using the card.
To summarize, student credit card is good to have. For high school students or college students, this card is a mean of freedom and at the same time also teaches responsibility. It comes in handy during emergencies, which is a good reason to invest in them. If your son or daughter is in school now, you may consider looking into it for them. It will help them to build a credit score which is good for their life in the future.
]]>Credit Card Types – Which One Suits You Best?
Low Interest Credit Card – If you’re interested in having a credit card only so you can pay for emergency expenses when you run out of cash, this is the best type of card for you.
Reward Credit Card – Every time you swipe your credit card, you get to enjoy an equivalent number of points depending on how much you’ve spent. The points you’ve accumulated can later be on exchanged for various prizes.
Airline Miles Credit Card – This is a type of reward credit card that offers only airline miles as rewards. When you use this credit card to purchase your plane fare, you’ll be able to enjoy reward miles. Later on, you’ll be able to use them and get discounted plane fare or fly for free even! The same rule applies for gas credit cards.
Student Credit Card – Credit card companies have lately been designing credit card offers exclusively for students. Although accompanied with higher interest rates, these cards often have funky designs and offer special reward programs developed primarily to provide maximum enjoyment for students. Proof of schooling is often required. It helps if you’re enrolled in an accredited school and you’ve got great grades.
Secured Credit Card – If you’ve got bad credit, there’s still a chance for you to own a credit card…but only if you’re okay with having a secured one. This type of credit card requires you to make a deposit on your bank account and serves as collateral in the event that you fail to pay off your credit card debt. Your credit card limit may equal or be more than the amount you’ve deposited.
Prepaid Credit Card – This isn’t a credit card per se, but it generally works like one. The limit of this card will depend on how much you’ve deposited in its account. You can’t spend more than what you’ve deposited. Its main difference with a secured credit card is that secured credit cards can have greater card limits beyond the value of its deposit.
Business Credit Card – This works just like any other conventional credit card only with a few additional perks that make it extremely suitable for business use. A business credit card can automatically separate personal expenses from business expenditures, facilitating monthly tallies for your taxes. It can also provide expense reports for your business, special rewards for your business, and allow you to provide supplementary cards for your employees. You can also choose to modify the credit limit of your employees if necessary.
Home-Secured Credit Card – This works like a secured credit card, but only this time you’re using your home as collateral. If you don’t get to pay off your credit card debt, you know what will happen to your home, don’t you?
Charity Credit Card – Think of it as shopping for a cause. Every time you purchase something using your credit card, a small amount of your money will be donated to the charity being sponsored by the credit card company. This is a great way to salve your conscience if you feel guilty about your materialistic tendencies.
Author : Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information on credit cards or to apply for a credit card checkout his recommended websites.
]]>Now things have changed. For the first time in years, college students are having a hard time getting approved for credit. While some may consider this a good thing, students need to have access to money in the event of an emergency. If an emergency savings account isn’t available, credit cards are the number one alternative.
If you’re a student who wants to apply for a credit card, follow these three tips for finding and obtaining a card that meets your needs.
Use the Internet
You can go online to look for student credit cards. These cards might have a higher-than-average interest rate, but they are more readily available to college students, who frequently have little or no credit history. You can compare deals on student credit cards right here at CreditorWeb.
Check With Your Bank
Do you have a checking account? If you’ve been doing your banking at the same place for six months to a year, you might have built up some credibility with the bank. Assuming you’ve kept a positive balance and haven’t bounced checks, you could convince your bank to issue you a student credit card on the strength of your financial history and current employment.
Ask Your Parents
It’s not a glamorous solution, but it will get the job done: ask your parents to add you as an authorized user on their credit card account. You will be able to make purchases with the credit card, and the account history will show up on your credit report. Just be aware that your parent’s credit problems can affect you as well. For example, if they max out the credit card or miss some payments, your credit score will suffer along with theirs.
Easy credit isn’t as easy as it used to be. Luckily, there are still steps you can take to find a good student credit card deal. Do a little research and don’t be afraid to ask your bank – or your parents – for help. A solid credit history will open the doors to all the things you’ll need in the future.
by: Janna Weiss
]]>As teenagers, many go out and get their first jobs, or are otherwise earning income from allowances or babysitting. It’s the perfect time for parents to help them learn the basics of money management; which is something many families skip over; leaving graduating high schoolers to move on to college or the “real world” with very little real world knowledge of finances.
Just a few short years ago, it was not only next to impossible to give a teenager a credit card, but you would be considered a little on the crazy side to do such a thing! Times have changed though, and there are various credit cards on the market for teenagers that parents can use to help them learn the basics of financial responsibility.
Credit cards for teenagers include features like parental control and digital ‘allowances’. It may be sweat-inducing to give your teenager a credit card, but a credit card makes a good educational financial experience for your child- before it’s too late for you to help them become financially responsible individuals:
Teach Them About Good Credit. With so many adults currently struggling to re-establish their credit or increase their income so it’s easier to keep up with their monthly payments, it’s never too early to teach teenagers how to manage money. Teaching them at a younger age can prevent them from over spending once they’re on their own. Nellie Mae claims that the average freshmen college student has over $1,500 in credit card debt; and once a student realizes how easy it is to “get what they want, now”, it becomes habit to use credit cards to buy the things they want while in college. If the teenager enters the adult world with solid money management skills, they’re less likely to get in over their heads in debt.
Your Options. If you’re not concerned about your teenager establishing a credit history at this time, and simply want a way to teach the basics of money management, you can look for a prepaid debit card with a Visa or MasterCard logo. Some of these cards may have annual fees or transaction fees- which just gives you another opportunity to show how using a credit card isn’t the same as buying with cash. You could also sign your teen up for a checking account with debit card; or put them as an authorized user of a credit card account you already have- or open a new credit card account with a low limit and put your teen on as a cardholder.
Gives Teen Access to Emergency Money. When your children become teenagers, chances are they are starting to spend more time away from you and on their own or with their friends. Sometimes they may have a need for cash- if a car breaks down and they need to be towed off the highway, or for long distance phone calls for example. Having a credit card in their pocket will make it possible for them to handle an emergency that requires access to money and can give you a little more peace of mind.
If you decide you are ready to teach your teenager the basics of money management and credit, make sure you spend some time investigating the various options available to you before choosing an option. Regardless of which option you choose, you’ll want to be sure to spend adequate time with your teenager and not expect them to know what to do with it on their own! Try using a service like Citibank’s Credit-Ed program: http://www.citi.com/us/cards/cm/student/index.htm
]]>These credit cards, offered by most major credit card companies, provide a slightly different package of offers than mainstream credit cards. But the end result is the same – your student can use the cards for a wide variety of expenses and possibly even earn rewards or cash back bonuses.
What makes a student credit card different? Depending on the issuer, there can be a wide array of differences between the cards that are designated for students and those that are sought by others. Let’s look at a few crucial differences:
* The interest rates are often lower
* There is usually no minimum income (and no cosigner either)
* Rarely are there any annual fees
* The cards are usually fairly easy to get, provided your student hasn’t encountered any troubles with credit before
* The credit limit might be lower than a regular credit card, at first. But once the student has established themselves as a responsible creditor, the limit will usually rise accordingly
It’s unusual for students to have to seek out these credit cards. Credit card company representatives often appear on college campuses, particularly at the start of each semester, and offer “freebies” or other incentives if the student simply applies. And here’s where the trouble comes in. Many students, who before have never had credit, often apply for more than one card, get approved for more than one card, and quickly find themselves in debt.
This can be dangerous; to think of a student falling into debt before even graduating college, but it’s fairly common. If your student is heading off to college, you can give him or her some tips for using a student credit card. These might include:
* Only use the card for necessities, not for party supplies or dining out
* Pay the bill in full each month (you might want to oversee this for a few months to make sure your student is being responsible)
* Remind them that if they pay the bill late, they might be hit with a higher interest rate
* Try to discourage them from applying for credit cards simply because they want the freebie – whether that’s a Frisbee or a gift certificate for dining out
* Teach your child some basics of good money management
Now, if your student is willing and able to handle the credit card responsibly (or you plan to pay the bill), there are many advantages to acquiring a student credit card. In fact, for many students, using the student credit card will be preferable to using a standard credit card. The advantages include:
* The lower interest rate can mean slightly lower payments if you must revolve the balance for a month or more
* Getting a credit card in their name can give many students a sense of independence and responsibility
* Students have the opportunity to develop good credit habits and a good credit rating before they even graduate college
* If you’re the parent, it can give you peace of mind to know your student has a credit card to use should an emergency arise.
* If you acquire a credit card that offers rewards, your student can use the card to purchase books, groceries and other supplies and quickly earn rewards
* You can keep your student’s credit use separate from your own, since no cosigner is necessary.