Credit Card For College Students Survival Guide
By Jan Schwab
One of inevitable assets for today’s college life is a credit card. There are several reasons supporting the stance – especially the benefits attached to a credit card. A credit card essentially protects the purchases, offers great opportunity to shop online and most importantly provides padding in case of emergencies. In fact, a credit card for college students can manage a great deal of the extra expenses unavoidable in college life.
Those lacking a credit card would have a plenty of opportunities to get one, as you hit campus. There are several credit card companies that set up booths and tables offering attractive incentive such as water bottles and T-shirts. However, before deciding to sign up for a credit card for college students, you need to keep the facts and figures in mind. The first step towards finding the perfect credit card is doing the research. Search into the websites for information and compare various credit cards offers side-by-side.
It is also important for you to learn about responsible use of credit cards to avoid being burdened by debt after graduation. There are instances where people at 30 still make payments for a pair of shoes bought in college.
There is no need to panic, credit cards can be tremendously advantageous for you. Nevertheless, look for the right kind of credit card, do some thorough research to ensure that the choice you have made does not haunt you down the line. First, consider whatever you get with your credit card – its not free money.
Fees for credit cards
The credit card for college students should be looked at as high interest loans in disguise, which comes with costly fees. Here are the details of typical credit card fees:
Finance Charges – It is the interest charge on the unpaid amount of your monthly bill that can be as high as 20 percent on the unpaid portion.
Annual fees – Certain credit card companies charge yearly membership fees that can touch anywhere between $20 to $100.
Cash Advance Fees – It shows as high interest fees provided in exchange for cash on the spot. Try to avoid such cash advances as the fees are steep, and interest rates are quite high.
Late Payment Fees – The interest rates can rise for paying late. It would also be costly to carry a balance. Further, failing to pay off the entire amount in the account each month could lead to big finance charges.
Hints for credit management
Now, if you have the card then you are responsible for the bills. Take a look at some of feasible credit management rules that could help you:
- Go through the details of the application material, particularly the fine print. Look for the “teaser rate” after expiry, the hike in interest rates in case you get late with the payment or fail to make a payment and the interest rates on cash advance.
- Before going for a credit card for college students, ensure that you would be able to repay the debt.
- With a credit card in your hand, do not feel overwhelmed, and refrain impulse shopping.
- Save the credit card for emergencies and carry the card only where you think it is important.
- Most importantly, pay your bills punctually in order to keep the finances and other charges minimum.
The credit card for college students provide a great way to start building your credit future on the line and gain vital responsibilities that would help you to face the real world. However, keep in mind your new credit card can either be greatly beneficial or pile a burden of debt on you depending on how you use it.