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What every College Student should know about Student Credit Cards

Introduction

Student credit cards are a great way to begin building your credit history and a strong, and are an ideal way to begin your life as financially smart adult. However, there are also many factors to consider when it comes to student credit cards. Here’s what you need to know:

• Compare a number of student credit cards before deciding on which one to apply. It is important to remember that, like any other type of credit card, the interest rates on student credit cards can vary greatly.
• In general, you should not need to pay an annual fee for a student credit card.
• Don’t apply for a student credit card until you have carefully read the terms and conditions associated with the card. If you don’t understand something, call the company and ask questions, as the worst decision you can make regarding a student credit card is applying for a card you don’t thoroughly understand.
• Consider opening a checking account before applying for a student credit card. This will allow you to begin building a credit history and will become an easy way to pay your monthly bill. If you have a bank account with a credit union, you will likely be able to apply for a credit card through your credit union, as well.
• Start your search for student credit cards online. There are so many great websites that feature and compare the latest student credit cards, which will allow you to compare the cards’ features, side by side.
• If you don’t have a steady job throughout college, you will likely need to get a parent to co-sign for the credit card. The federal CARD Act has changed the rules when it comes to student credit cards, so you may need the help of your parents to get your first student credit card.
• Make a commitment to always pay off your credit card each month. Now is not the time to carry a credit card balance and create bad credit card habits that will haunt you well beyond your college years. Charge only what you can afford to pay off each month and begin establishing a strong credit score that will help you do everything from purchase your first car to rent your first apartment.

Five Surefire Ways to Negatively Impact your Relationship with Credit Cards

Introduction

Credit cards have gotten a bad rap as of late, mainly as a result of the Credit Card Reform Act recently signed into law by President Obama. It is important to remember, however, as these new credit card changes begin to take place, that you also have a degree of responsibility when it comes to your credit cards and your credit score.

Many consumers, however, fail to consider this until they find themselves in an unhealthy relationship with their creditors and in over their heads in credit card debt.

What did they do wrong?

1. They didn’t shop around for the best card. Keep in mind, even with the current state of the credit card industry that it is quite competitive and that, although it may take some searching, there is likely a card out there for you. From low interest rates to excellent rewards programs, there are a slew of attractive offers from creditors.
2. They never paid more than the minimum. The minimum payment amount set forth by creditors is not written in stone. In other words, your check each month to your creditor should not reflect just the minimum payment. The more you pay on your card each month, however trivial you think that amount may be, will get you out of debt all that much quicker.
3. They never searched for more money in their budget. If you don’t think you can afford more than the minimum payment on your credit card each month then you’re doing yourself a huge injustice. Some of the smallest changes in your budget can make the biggest difference in your credit card balance. Sit down, write out a comprehensive budget, and find ways to save so that you can put that extra money on your credit card each month.
4. They used cash advances and convenience checks way too often. Cash advances and convenience checks are often a problem in disguise. However convenient they may seem, they often come with many fees and charges, all of which can do nothing but plunge you further into debt.
5. They lived beyond their means. Simply recognizing the difference between your wants and needs can do wonders for your budget and your credit card balance. Instead of purchasing things that are simply out of reach for you financially, take a moment to visualize your overall goal of financial independence and say “no thanks” to living beyond your means.