The way to help build a bright future is to extend your education into a higher learning facility. A 2004 study by the U.S. Department of Commerce found that a high school graduate earns an average of $36,000 per year, while a person with a Bachelor of Arts Degree averages $65,442. These startling figures alone should encourage most students to continue their education after high school graduation.
As parents, we see that our children attend school to get their book smarts and urge them to further their schooling. But quite often we neglect teaching them one of life's more important lessons, money management. This can be one of life's tougher lessons and not so easily learned. That's where the student credit cards can come in. The lower limits set on the student credit cards can keep the lid on expenditures, while at the same time showing the student exactly where their money is going. The discipline of meeting that monthly payment each month is part of their higher education while at the same time helping to build a future. It’s another form of education, but in real life.
As the college degree brings a much higher earning potential, no matter what your income level is, a good and solid credit rating is a must for every person. Whether it’s a home loan or a car loan or a department store credit card, a good credit rating is a necessity of life. There's no easier way to begin building that credit history than to take advantage of one of the hundreds of student credit card offers being made today. Whether it be an online credit card offer or one received in the mail, students should seriously consider obtaining a student credit card.
The student credit card offers vary. From 0 introductory APR to cash back programs, there's an offer to fit everyone's needs. Some credit card companies offer rewards to students for keeping their grades up and paying their bills on time. You just may be able to afford that graduation trip through one of the rewards programs being offered. This is the perfect way to learn Finance 101, the discipline of money management, build a good credit history, and be rewarded at the same time. Obtaining a student credit card makes perfect money cent$.
Ah, those college days! To most of us, they bring back memories of first loves, long hours studying for exams, and endless parties with the best friends of a lifetime. But all this fun can come at a cost—as the credit card bills of most college students attest too. It’s a shame that kids can graduate college with thousands of dollars of debt, instead of just a promising future.
Some might argue that college kids just shouldn’t have credit cards at all. They can’t handle it, these people say. But that’s not a fair option either, because credit cards give personal and financial freedom that college kids deserve. The answer is somewhere in the middle. College kids should have access to credit cards, but they should also learn to control their spending to avoid crippling debt.
1. Plan a Budget
One of the best ways to control spending is the old-fashioned budget. It may sound like an anachronism in a world of keg parties and all-you-can-eat pizza fests, but a budget could go a long way to preventing bad credit. First, figure out all your weekly, or monthly, expenses, such as food, books, bus fare, etc. A credit card statement is a great way to calculate this budget.
2. Follow Your Budget Carefully
Then plan to use your credit card for just these expenses—and pay for these expenses. You see, the only problem with credit cards is if you don’t pay them off month to month. If you plan ahead with your budget, and only spend the amount you planned every week and month, then you will be able to pay off your credit card on each statement. That, my friends, means no debt will build up.
3. Consider Only Using Your Credit Card for Major Purchases
Another view of credit cards goes like this: they should not be used for everyday purchases, but instead used for big buys. In this view, your monthly budget expenses would only come out of your cash fund. Your credit card, then, would be used for long-term purchases, such as furniture, books, and other things that may take longer to pay off.
4. Don’t Splurge
Going along with this view is the fourth way to help control your spending in college. And that is—don’t use your credit card for little splurges, like buying a round of beers for friends, sodas at the campus store, or CDs over the Internet. You’re better off leaving your credit card in a safe spot, checking your wallet for cash, and if it’s not there, then don’t buy!
5. Don’t Let Your Parents Help You
Last but not least, you can control your spending with college student credit cards by not allowing your parents to pay off your balance every month! Yes, believe it or not, taking a little bit of personal responsibility for yourself—even if you are in college—can go a long way to helping you hold off on irresponsible purchases
As your son or daughter heads off to college, there are a lot of things that they will be learning about—and managing their finances is one lesson that needs to be taught before they pack their bags.
How students get into trouble
When college students are first living on their own, there is a lot of freedom that they are enjoying and learning to handle. They are flooded with credit card offers on campus that come with free t-shirts or CDs. And they think that a credit card is no big deal and something that will help them get the things that they want.
Unfortunately, credit card companies realize that college students aren’t all that knowledgeable about credit cards and capitalize on that, causing thousands of dollars in debt outside of school loans. But there are ways to teach your child how to handle a credit card.
Credit cards aren’t a bad thing
While it might seem like a simple solution to forbid credit cards entirely, this can also be an opportunity to teach your child how to handle their money. Start by applying for cards with both of your names on it and with a low limit. This allows both of you to have access to the card while also giving you a statement each month to see what the child is spending money on.
Budget out a limit for each month and then have your child pay that off or make it clear that they will pay it off during the following summer. This can teach a college student not to pay for things that they can not afford.
The best card will do this
The best student credit card will have a low limit that your child will need to watch in order to stay in a good credit standing. And they can use it to buy their school books safer than they could with cash.
And for emergencies, the card can be used to cover unexpected costs, but only when you have gone through a repayment plan to help them learn that money that is spent on a card needs to be repaid.
The best student credit card will also allow the student to gain rewards for their purchase, perhaps cash back or gas money for trips back home. even though they won’t be spending a lot on the card, it can help to see how credit cards can be used responsibly
Everybody knows that collage life requires finance. Any student who wants to pay his way through college seeks a source of finance to pay for education, studying material and everyday expenses. The problem begins when the student’s family can’t support monetarily during emergencies or daily expenses due to being far away. Student Credit Cards become a must and so, when shopping for a credit card one can’t be careful enough. There are many things one needs to know before applying for a student credit card; following are some tips that will help you get started with the application process and will also teach you some basics on credit card proper use: Fees and Rates Student Credit Cards have somewhat high fees and interest rate, this is due to the fact that students usually lack a credit history and so, the credit card issuer is making a blind guess so to speak. If you want to get a lower interest rate, though not required, you can always apply with a co-signer. A co-signer will become responsible for the card debt along with the credit card holder and if the holder fails to pay, he will have to cancel the debt. If a co-signer is present, his credit score will be considered in order to calculate the interest rate, and if the co-signer has good credit then, the card will carry a lower interest rate. Starting six months 0% APR In order to make things easier for students, most student credit cards offer a 0% APR for at least six months. Students tend to use this special promotional rate to pay for all he moving and settling expenses. Starting college is usually very expensive: moving expenses, studying material, college costs, more than usual phone calls, etc. And it is good to have cheap finance during this initial period, once the promotional period ends, the student will be already settled and won’t have so many expenses. Additional Benefit Another benefit that comes along with being a credit card holder is that requirements for obtaining other services like a phone line, ISP, etc. or even renting an apartment will be eased due to the fact that owning a credit card is prove of credit worthiness. Moreover, some landlords actually require tenants to own a Credit Card in order to lease them rooms or apartments. In any case, being a credit card holder is always a plus not only for the use you can make out of it, but also because of what having one implies. Getting the right Student Credit Card At this point, you surely want to know where you can get a student credit card. There is no single answer to that question. However, the best way to finding the right student credit card for you is to perform an online search and request information from different credit card issuers, comparing them and once you’ve found which one is best for you, you can apply directly online. This way, you’ll get the best deal at the lowest cost.
Are you familiar with student credit cards? These credit cards are meant for college students, and are easier to get than regular credit cards. They can help a student establish credit, but they can also bring credit problems to careless students. Student credit cards can be a source of temptation for college students. Young adults can be easily tempted to buy unnecessary things with their credit card, even if they do not have the money to pay for it. Eventually the balance they charged for their shopping sprees must be paid back. If a college student is unable to pay the full amount within a certain period of time, interest will be charged. Credit card companies charge interest at a percentage of the over due balance. For instance, if a student has a $100 balance and the credit card company charges a 15% interest rate, the student now owes $115 to the credit card company. The interest keeps adding up and eventually the student may end up paying only the interest, and their credit card balance is never going to be paid off. That is why the parents of college students should first explain the proper use of student credit cards to their children, before they allow them to get credit cards. There are also a few things that should be examined before students choose a particular credit card. It is important to check the annual fee of student credit cards. An annual fee is a lump sum that some credit card companies charge to their credit card every year. It would also be wise to look at the interest rate and other fees of student credit cards. There are cases where the interest charges can send a credit card over the limit. This will cause extra fees, and the student will be unable to use the credit card. Students should pay attention to the different terms and conditions of student credit cards, so that they can determine the particular credit card that is best for them.
Once a student graduates from high school and heads off to college they will be tempted with student credit cards. Student credit cards are aimed at college students. They are easier to get and are great for helping a student establish credit, however, they can also get a student into credit problems. Before ever getting a student credit card a student needs to understand how credit cards work and how to avoid getting into debt. Credit cards offer a loan on purchases. A person can buy things with their credit card even if they do not have the money to pay for it. However, eventually the balance charged must be paid back. Most credit card companies allow a person 30 days to pay back the amount charged. If the person fails to pay off the full amount within that time frame the credit card company charges them interest. Interest is charged at a percentage of the overdue balance. So if a student has a $100 balance and the credit card company charges 20% interest the student now owes $120. Over time the interest keeps adding up and eventually if the student is only paying the minimum amount due they are in reality only paying off the interest and their credit card balance is never going to be paid off. This is why it is important for a student to understand how credit works before ever signing up with a student credit card. Once a student decides to get a student credit card they need to look at a few things before making their choice. They need to check out the annual fee. An annual fee is a lump sum the credit card company charges to their credit card once a year. Some cards do not have an annual fee. additionally they need to look at the interest rate and other fees. Most accounts charge fees for going over the issued credit limit. Sometimes interest charges can send a card over the limit. This not only causes extra fees, but also means the student can no longer use the credit card. Paying attention to the different terms and conditions of the card will help the student to choose the card that is best for them. Student credit cards are a great way to establish credit. A student should be careful, though to make sure they are responsible when using their credit card, so they can get the benefits of it, not the problems.
High school life is over. You’ve moved away from home and you’re starting a brand new chapter in your life with college. Independence feels great, but it’s sure to feel greater if you’ve got your own credit card, don’t you think? 8 Tips for College Students Wanting to Apply for a Credit Card Here’s what you can do to make the credit card application process as hassle-free as possible. Tip #1 Prepare proof of identification. Have your photos ready as well as all your valid IDs. Credit card companies will always have to verify that you are indeed who you say you are before you can proceed any further. IDs where your age is stated are also preferred because you have to prove you’re at least 18 years old as well. If you have any bills under your name, take them with you as well because they can serve as proof of residence. Tip #2 Prepare proof of schooling. Credit card companies generally prefer to issue credit cards to students who belong to accredited colleges and universities. If you belong to such a school then you’re in luck. If not, you can compensate it by showing your previous records – if they’re excellent, that is. Just like when you’re applying for a driver’s license, credit card issuers also take academic and extra-curricular excellence as a sign of maturity and trustworthiness in your part. Tip #3 Prepare proof of financial assets. Student credit cards tend to charge higher rates than usual, but you might be qualified for lower rates if you’re already working or you have money and a bank account in your name. Either way, make sure you can submit documentary proof of your work or assets. Tip #4 Speaking of interest rates, the first thing you should look for in a credit card is the lowest possible interest rates. This might mean not being able to enjoy a reward-based credit card, but at your age, you might not yet afford the higher rates charged by credit cards offering reward points. If you see a 0% APR credit card, make sure to check how long the offer would last and what the standard APR is afterwards. Tip #5 A number of credit cards allows you to apply even without a cosigner, but some of them tend to have stricter application requirements. If you don’t want to go through the trouble of submitting additional requirements, simply ask your parent or legal guardian to act as your guarantor when you apply for a credit card. Tip #6 Always look for a credit card that allows you to manage your account online. This will allow you to check your account balance regularly and know when and how much you have to pay for your credit card every month. Tip #7 There are a few additional perks that you might deem necessary. If you are fond of shopping online, look for a credit card that offers you fraud liability guarantee at no extra cost. Other credit cards offer you “thank you” points for being a prompt payer. Tip #8 Now that you know what you need from a credit card, find one that matches your preferences and then submit your application. Remember to be courteous and answer all their questions honestly. You’re sure to have your application approved in no time. Have fun with responsible swiping!
