Record Number of Students Applying for Credit Cards Online
Students today are more Internet savvy than a generation ago and spend countless hours online doing everything from downloading music to school research to shopping. So it makes sense that the Internet would be the first place that this generation would turn for getting credit.
A credit card is fast becoming the most needed accessory for college students today. To get their textbooks and pay for supplies and fees, students are turning to the easiest way to pay – plastic.
While parents may advocate for student credit cards as a tool to help them learn fiscal responsibility and build a credit history, students look instead at the gratification of having instant accessibility to their “needs.” This is why they are prey for those credit card companies who are lucky enough to set up on campus. The temptation is too great to resist, and some deals really are too good to be true.
However, if students are smart enough to walk away from those high pressure sales and knowledgeable enough to research for credit cards online as they are for finding excuses to skip class; then they have endless opportunities for great deals literally at their fingertips.
The first step is reading all of the fine print associated with the cards, to make sure that the “best deal” really is the best deal. Leave the high pressure sales pitch behind and enjoy the quiet of your dorm room while you peruse the various cards that are available. Some sites will even compare cards for you, so the decision can be easy.
The second step is selecting a card with no annual fee (the cost of having their card) and a low annual percentage rate (APR), which is the interest rate you pay on outstanding balances. Watch out for cards that say “0% APR for six months!” – as these deals may result in a 15-26% APR AFTER that six month period. You’re better off with a fixed rate of 9.99% for an indefinite period.
The third step is to act responsibly with your credit card as the activity will remain with you forever as part of your credit history. Before you get a second, third or fourth credit card; stick with just one until you know you can pay it off monthly or at least make the minimum monthly payments without problems. Getting a second card because your first one is “maxed out” is not a responsible act.
Once you know that you can be a responsible credit card user, then you can start looking at the benefits of your card. If you travel during spring break, find a card that will let you earn travel points, such as frequent flier miles. That way, when you are buying textbooks, movies or dinners, you will also be earning that spring break getaway.
If you are really into supporting your school, then you can get a credit card with your school logo in which your educational institution gets the rewards of your usage.
Just remember that one day, when your wild college days are behind you and you have that Ph.D. and are ready to buy a home or a fancy sports car; your credit history will come into consideration. It’d be sad to know that your college days affected your life 5-10 years later when you were making a six-figure salary.
Quick Tip #1
Although it may be overstated, there is a lot of truth to people ruining their credit score due to missing payments and
paying their credit card bills late.The fees can pile up and the interest rates can grow before you know it.
|
Quick Tip #2
Never let your cards go out of your sight and always check your receipts and your card statements thoroughly.
These are simple ways to prevent credit card fraud happening to you. If you do see a suspicious credit card statement,
then call your credit card company straight away and cancel your cards. |
Quick Tip #3
Today’s cards offer a wide range of excellent features, including frequent flier points, programs that bank points toward a new car
and cards that support charitable organizations. Other options worth having include car rental insurance coverage, trip cancellation coverage
and extended warranty coverage. |
|