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Posts Tagged student credit cards

Are Students Getting In Over Their Head With Student Credit Card Debt?

Jun 11

Posted by admin in Credit, Debt Relief

It?s no big surprise that major credit card companies are aiming their marketing campaigns towards our countries up and coming generation. To credit card companies, no consumer is more profitable than today?s college students.

Students are big business to them, and for good reasons. Why? Simple, teens like to spend money they don?t have! Were you poor when you left the house and took your first shot at the big University? Yeah, so was I. In fact the majority of today?s college students live off of loans and a minimum wage job, leaving them very little to spend on merchandise. This is where the credit card companies make their killing. Instead of saving up for that cute pink shirt on the clearance rack, or that shiny new watch, students can charge it to the new ?low? APR student card they just received in the mail. In fact, by opening up credit card booths Nationwide, credit card companies are making it easier than ever for students to get their feet wet.

So in answer to the topic question: yes, students are most definitely getting in over their head when it comes to credit and debt management. If your part of the younger generation you may recall getting your very first shiny gold/platinum card in the mail. Do you remember skipping all the fine print mumbo jumbo? Well, most students today are in the same boat. The only thing we cared about is that little line at the bottom that tells us how much we can spend: our line of credit. The fact is, Most ?Student? credit cards come with a ridiculously high APR and crippling late fee charges, which in most cases, cause the APR to soar even higher!

This may seem a little redundant and obvious to you and I, but to students the phrases ?APR?, ?late fees? and ?interest rates? aren?t an established part of their vocabulary yet. This is where things get sticky. The statistics don?t lie, and research has it that nearly 11 percent of people who seek credit counseling are under the age of 24. According to Colorado Public Interest Research Group, 49 percent of Colorado\’s college students have more than one credit card, which is higher than the national average of 37%!

The solution should be obvious. Students should be taught about credit and debt management. In fact, most students don?t even know that free nonprofit credit counseling agencies are at their disposal, nationwide. Counseling can help make budgets or stop students from sinking further in debt. They also re-teach young students the ?value? of the dollar bill, a concept slowly diminishing in our day and age. It?s obvious credit card companies care very little about this. The more we don?t know, the more they make.

Adam Boulton is currently enrolled as a full-time student and has seen first hand the damages student credit cards can cause. If you would like more info about the pros and cons of student credit cards please visit his website at StudentResourceCenter.com

Writen By : Adam Boulton

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Secret To Building Up Your Credit Using Credit Cards

Mar 28

Posted by admin in Credit

As soon as a student is done with high school and enters the wonderful world of college they are bombarded with credit cards specifically targeted at students. Although credit card companies pitch them as a way for students to establish their credit for the future they can just as soon be a way for student to get into debt, stay in debt and destroy their credit.

Before jumping in with both feet a student needs to understand how a credit card works and what they can do to avoid sinking in debt which becomes a burden on them for a long time if not for the rest of their lives.

What exactly is a credit card? Many students might assume wrongly that a credit card is a simple plastic for spending when they might not have the money to pay for their purchases right there and then. A credit card is really a debt loan from a financial institution to you. They offer you a loan to make your purchase with the expectation that it will be repaid, but more importantly repaid on their time, as in when they stipulate that it should be repaid. Most credit card companies give a month for all outstanding purchase loans to be repaid. That is the key part of the loan equation that many students miss and how your credit card can get you into a financial mess.

When the loan is not repaid in full within that time frame the credit card company charges an interest on your credit card, but on what in reality is a loan. The interest is a charge on the overdue balance and is usually a fixed percentage. In reality that is the beginning of the great debt burden. Here is why.

You see when the full loan or the full charge on the credit card is not paid up the interest charges start to mount and mount on top off each dollar and cent owed. When it eventually gets to the point where only the minimum due is being paid you are in reality only paying the interest charges and not the balance on the credit card. This is where the problems start because you might never be able to pay off the credit card balances and will become stuck with debt.

So before a student gets that credit card he or she needs to look at a couple of things before deciding on which credit card to get and more importantly how to manage the credit card.

First they need to look at the annual percentage rate, the grace period which is the amount of time that is given to make good on all payments, and most importantly the interest rate as this determines the monthly charge on your credit card purchases and can sometimes even cause you to go over your card limits. You need to also know what the spending limit on your card is so you stay within the purchasing power of your card. There are usually other fees attached which vary from credit card company to credit card company which needs to be paid attention to and assessed before picking a credit card.

No matter what people think student credit cards are a way to build your credit and having a credit history is very important for almost every facet of society. It impacts your ability to get loans, own a car or an apartment, buy a house and just about anything you can think of. So think before you get that credit card remember to be careful and use it wisely.

You can get more information about credit cards, credit card companies and how to apply online for credit card and learn all about college credit cards at www.zapmachine.net

Writen By : James Hegarty

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A Guide For Student Credit Cards

Mar 16

Posted by admin in Credit

Oh, what a wonderful and terrifying time going off to college can be. Moving away from home and making it on your own is a huge step. You have taken all of the right classes to prepare you to succeed as a college student. But, you need the proper education outside the classroom in order to succeed. That includes knowing how to handle your student credit cards.

Keep Your Head On Straight!

One of the first things you will notice when you arrive on campus is that there are student credit card vendors everywhere. It makes sense, really. The credit card companies want to establish relationships while their client base is young. This relationship can lead to car loans and mortgages down the road, not to mention finance fees generated by the exuberant spending of American youth. Before you embark on this smorgasbord of credit consumption, you ought to consider a few things.

Consider, for instance, that the average student ends their college career with just under $3000 in credit card debt. An astounding ten percent of all students graduate with more than seven thousand dollars in credit card debt. I know, I know, you hear this statistic all of the time. It seems abstract and it is easy to tell yourself, ?Well, I?m not the average student; I won?t fall into that trap.? That?s good. No, really, that is a great frame of mind. The (difficult) trick is to keep that perspective so you don?t get seduced by your newfound spending power.

Some Quick Tips

Here are a few quick tips to keep your finances in order:

1. Keep your card count low ? Have you ever seen John Q. Consumer with 39 credit cards in his wallet? Absurd. Since you are just starting to build your credit history you shouldn?t need more than a couple of cards. Choose wisely.

2. Shop Around ? Don?t grab the first credit card offer you see. There are a ton of options out there, and a little patience will get you settled into the card you need, and possibly save you much money and stress over the long run.

3. Pay Your Balance!!! ? It?s the cardinal rule for developing superior credit: keep your balance low, and pay it off completely when it?s appropriate. If you do this now, you will get far better credit card offers in the future.

4. Tell Your Parents ? Yeah, yeah? it?s the last thing any college student wants to hear. ?Tell your parents.? Um, yeah? right. Well, in spite of your new independence you should let your parents know about your credit cards. They are a good resource for not just emergency financial support, but more importantly, for financial advice.

?In Conclusion??

Finding the right student credit card can make all of the difference. Two of the most popular student credit cards are the Citi Platinum Select for College Students, and the Discover Student Clear Card. The Citi Platinum Select Card is an all around solid choice for first time card owners. It is an essentially bulletproof option for any student looking to establish credit history without having to worry about a minimum income, or a co-signor on the card. For those students looking for a little extra, they should start with the Discover Student Clear Card. The Clear Card has a lot of extra features, including up to 5% cash back on specific purchases. Both cards share a six month introductory APR of 0%.

When you arrive to college it is a good idea to get a student credit card or two, but it?s a better idea to use them wisely. You will quickly find that the right card is an extremely useful tool for your purchasing habits and developing a stable credit history. You shouldn?t be afraid of credit card ownership; rather you should realize that this is an early step to develop a happy financial picture in the long run.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com

Please click here to find Student Credit Card Applications.

Ed Vegliante runs the website http://www.Credit-Card-Surplus.com, a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. View more Credit Card Articles.

Writen By : Ed Vegliante

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