Helpful Credit Card Tips for College Students
Many consumers wonder why credit card issuers offer excellent first credit card programs to college students. Not only do these credit card programs carry decent interest rates, fees and payment terms. They also go with useful gift items and freebies. College students are showered with T-shirts, beach towels, pens, bags, caps, writing pads, and even electronic gadgets as soon as they apply for their very first credit cards. Now, what could be the reason behind such excellent credit card offers given to college students?
Actually such offers are part of the marketing strategy employed by many credit card companies today. These firms understand the fact that college students are prospective life-long credit consumers who would use their cards regularly. And as they continuously use their first credit cards, they help card issuers generate bigger profits year in and year out.
Now, suppose you are a college student who wants to get your own student credit card. What tips can you employ in obtaining as well as in handling your first credit card? Below you will find tips that you can use to get approved for the credit cards for student program you intend to acquire. You will also see in the succeeding paragraphs pointers that you can use to responsibly manage your student credit card.
Tips for Student Credit Cardholders
1. Look for a credit card with a good rate. You should look closely at the Annual Percentage Rate imposed on your credit card program. Take your time in searching for credit cards for students that carry the lowest possible interest rate. This way, you will only need to make small payments on interest, in case that you are not able to pay your credit balance in full.
2. Shy away from credit cards that charge annual fees. Skip credit cards that charge annual fees. Instead try to find a credit card program that offers the most affordable rate of interest as well as fees. In so doing, you won’t need to worry about shelling out a great deal of money as you apply for and use your first credit card.
3. Beware of reward credit cards. Reward credit cards encourage you to spend and spend until you are able to redeem your desired reward. But as you do this, you are actually incurring huge credit card debts that can eventually prove very difficult to pay off. So, you need to be wary of taking out and using reward credit cards.
4. Keep it to one card. Resist the urge of applying for more than one student credit card, even if you find it very easy to apply for different credit card programs. This way you can minimize the risk of running up large credit card balances.
5. Pay your charges on time. You need to remember the importance of consistently paying your credit card bills on time and in full each month. This will not only help you avoid paying large interest charges and penalties. Paying on time can also help you build a good credit profile that can ensure you of receiving decent credit deals in the future.
6. Avoid the cash advance facility of your credit card. Depending too much on the cash advance offered by most credit cards for students can prove to be very expensive. The reason for this is that the cash advance feature charges high variable rates and finance fees every time you withdraw money from your credit card account. So, as much as possible, you must avoid taking cash advance with your credit cards.
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