Things that Must be Considered When Choosing Credit Cards for College Students
Students are often cautioned by parents about the things that must be considered when choosing credit cards for college students. You may think such advice isn't necessary and that may be true if you understand money management.
The truth is that most students graduating from high school know very little about how to budget and have few money management skills. If you can be patient with the parental advice, you may be grateful for that advice once your credit cards bills are due.
Credit card accounts for college students have been news topics recently as complaints of predatory lenders have grown. In past years, lenders have set up booths on registration days and during the week of classes to lure new students to apply for that lender's credit card.
Students might see that as "free money" and it is this attitude that has led many college students into credit debt and financial difficulties that last throughout their years of education and follow them as they begin their new careers.
If you understand the things that must be considered when choosing credit cards for college students, you can avoid the stress and anxiety that are often a result of credit card debt. Put yourself in charge and make the choice of a student credit card the result of a careful examination of the pros and cons offered by various credit lenders.
Where to Apply for A student Credit Card
The kiosks set up by various credit lenders are tempting. There is a friendly person there offering to give you money. What more could you want? Perhaps you might want to compare what that nice guy is offering to the offers of other lending banks. By all means, take a pamphlet from those kiosks if you want. Then go online and search for student credit cards and compare the terms against other credit offers you find on the internet.
Interest Rate and Fees
The interest you pay on a credit card is money you are giving to the lender for the privilege of buying now and paying later. If a friend offered you $100 and said you would need to pay back $500 next year, you would know that is not a good offer.
Yet credit card companies do exactly that when they charge high interest fees. If you pay off credit debt by only paying the minimum due each month the debt you accumulate during your educational years may not be fully paid off ten years later. Fees are another important point to consider.
It is not acceptable to pay credit card bills late. It doesn't matter if the bill is one day late or ten days late. You will be charged a hefty late fee. The best student credit cards may have a late fee of $15 but $39 is a more likely fee today. In addition, if you charge $50 and have only $40 of credit line on your account, you will be charged an over limit fee which can also be as high as $39.
Special Offers and Rewards
When choosing credit cards for college students, the reward program offered by a lender may be enticing. Extra air miles, cash back, discounts on dining and rental cards and everything else you might think of.
Cash back may be a good option if the other terms such as interest rate and fees are also acceptable. Discounts at participating merchants are only valuable to a student if those are merchants he frequents.
The biggest selling point for credit lenders on college campuses are the "special deals for students". Supposedly, if you apply right here and right now, you get a big bonus of some kind. Recognize the sales talk for what it is. There is a good chance that if you go to that lenders website you will find exactly the same deal offered there.
One of the best credit card rewards for college students is one that rewards good grades with lower interest by providing double rewards for good students who also pay their credit card bills on time every month.
Conclusion
In the end, the things that must be considered when choosing credit cards for college students can be best described as using common sense. Be skeptical of special offers and reduced interest rates for introductory periods, avoid annual fees and read the fine print to know exactly what you are agreeing to when you sign that credit application.Return from Choosing Credit Cards for College Students to Best Credit Card Deals