Watch Out For Student Credit Cards
Going Off to college or university is an exciting time and full financial responsibility. For many of us to become a student for the first time, we are eligible to apply for a credit card and, with fees to pay and books to buy, it seems tempting. So what do you need to know about student credit cards and what you need attention?
What is a credit history?
Even if you are a student and therefore not earn a salary from the age of 18 you are eligible to apply for credit cards.
Once you are legally allowed to borrow, debt and your payment history will be recorded by the three credit reporting agencies: Experian, Equifax and Trans Union for the rest of your life. They keep track of your spending habits and particularly bad spending habits such as late payments. Student credit cards are the first step in your credit history. When you apply for a loan, credit card or mortgage in the future, the lender to consult one of these credit reporting agencies to see if you can manage your money wisely.
All this begins with your first credit application, which is likely to be a student credit card. So remember, credit is not "free money". If you manage your account and always pay your debts in a timely manner, you build a good credit history and qualify for lower rates interest, increased spending limits and credit rewards in the future as very profitable and cash-back rewards Air Miles programs. But if you mismanage your credit account student, you cause problems In the future and May be refused more credit. So you pay your debts comment does count, even as a student.
How are studying different credit cards?
Well, basically, they are not. 'Student credit card "May son amicable, as borrowing from your Mom and Dad, May and they offer attractive benefits for students, such as Karma earn points on Facebook with the Chase 1 MasterCard student, but the end of the day they are even credit cards.
Some of the offers usually highlighted on student credit cards are:
* No liability if your card is lost or stolen
* The ability to create your credit history
* Travel Advantage cash or points
* Portability points to charitable causes
* 0% introductory APR, usually for Les Six months
* No bank annual administration fee
* Rewards for making payments on time
These are all advantages you see often on credit cards available to people with good credit rating. Most offers, such as cash back on purchases, are designed to encourage you to spend. 0% APR is the same, but as points donation to charity, all designed to encourage you to increase your spending. Be careful and remember that money borrowed must be repaid. As a student with little or no income, May prove very difficult. Your spending limit May be high, but your ability to repay the loan is what is important.
The main things to remember before accepting a student credit card are:
* Introductory Offer, such as 0% APR, at the end - what the real serums APR.
* Are there other bank charges annual?
* If the card includes a cash incentive, what percentage of cash-back and in what types of purchases?
* Did you really need such a credit limit or you just be tempted to spend more than you can reasonably repay?
Do not be blind student friendly offers or incentives, which is in fact the map of supply and it is the best student credit card for you? Can you repay the debt on time each month? If the answer is "yes" then you will enjoy the convenience of using a credit card and to take the first step towards a good credit rating and future credit opportunities as a new home and starting a business.
What is a credit history?
Even if you are a student and therefore not earn a salary from the age of 18 you are eligible to apply for credit cards.
Once you are legally allowed to borrow, debt and your payment history will be recorded by the three credit reporting agencies: Experian, Equifax and Trans Union for the rest of your life. They keep track of your spending habits and particularly bad spending habits such as late payments. Student credit cards are the first step in your credit history. When you apply for a loan, credit card or mortgage in the future, the lender to consult one of these credit reporting agencies to see if you can manage your money wisely.
All this begins with your first credit application, which is likely to be a student credit card. So remember, credit is not "free money". If you manage your account and always pay your debts in a timely manner, you build a good credit history and qualify for lower rates interest, increased spending limits and credit rewards in the future as very profitable and cash-back rewards Air Miles programs. But if you mismanage your credit account student, you cause problems In the future and May be refused more credit. So you pay your debts comment does count, even as a student.
How are studying different credit cards?
Well, basically, they are not. 'Student credit card "May son amicable, as borrowing from your Mom and Dad, May and they offer attractive benefits for students, such as Karma earn points on Facebook with the Chase 1 MasterCard student, but the end of the day they are even credit cards.
Some of the offers usually highlighted on student credit cards are:
* No liability if your card is lost or stolen
* The ability to create your credit history
* Travel Advantage cash or points
* Portability points to charitable causes
* 0% introductory APR, usually for Les Six months
* No bank annual administration fee
* Rewards for making payments on time
These are all advantages you see often on credit cards available to people with good credit rating. Most offers, such as cash back on purchases, are designed to encourage you to spend. 0% APR is the same, but as points donation to charity, all designed to encourage you to increase your spending. Be careful and remember that money borrowed must be repaid. As a student with little or no income, May prove very difficult. Your spending limit May be high, but your ability to repay the loan is what is important.
The main things to remember before accepting a student credit card are:
* Introductory Offer, such as 0% APR, at the end - what the real serums APR.
* Are there other bank charges annual?
* If the card includes a cash incentive, what percentage of cash-back and in what types of purchases?
* Did you really need such a credit limit or you just be tempted to spend more than you can reasonably repay?
Do not be blind student friendly offers or incentives, which is in fact the map of supply and it is the best student credit card for you? Can you repay the debt on time each month? If the answer is "yes" then you will enjoy the convenience of using a credit card and to take the first step towards a good credit rating and future credit opportunities as a new home and starting a business.
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12:51 AM
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