Finding the Best Offers for Student Credit Cards
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by: barrywaters
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Student credit cards work exactly like regular credit cards, and because theyre designed for students, theyre easier to apply for with no credit history. However, the price for getting a credit card without a secure credit history is higher fees and higher interest rates, both of them designed to offset the potential cost of offering credit to an unproven consumer. Sometimes, credit cards designed for students also come with unnecessary extra fees that credit card companies hope students will accept because they are too inexperienced to know these fees are not normal. Heres how to tell the good student credit cards from the bad ones.
* What is the interest rate? The offer is good if the annual percentage rate, or APR, is equal to or only a couple of points above the going rate for a regular credit card. Dont bother applying for student credit cards with higher rates. Also avoid credit cards whose default rate is substantially higher than the default rate for a regular credit card. This is the rate youll pay if you make a mistake in paying your bill, and it can be entirely too easy to make such mistakes, so get a default rate thats as low as possible.
* Does the card charge a yearly fee? It shouldnt. Yearly fees are a leftover from the era when only the rich had credit cards. Nowadays, no good credit card charges an annual fee. If the credit card offer you like best does have an annual fee, ask the issuer whether it will waive the fee for you. Most companies will. They assume that the only people who will let the fee stay on their contract are the inexperienced credit users, and the more savvy customers will ask them to waive the fee as part of the application process.
* There should be no monthly or weekly fee at all. Period. These fees, which are a common way to gouge people with very bad credit ratings, shouldnt appear anywhere on a student credit card application. If you see them, dont waste time asking the company to waive the fees. Throw the application away.
*Is there a charge for paying your bill by phone? Most credit card issuers have a number you can call to pay your bill either routinely, or as a panic measure when theres no time to mail in a check before the deadline. A small fee for making an emergency payment is acceptable, but you shouldnt be charged anything to make a routine payment by phone.
* What do the credit card companys customers say about the company? Do they routinely raise interest rates without telling customers? How is their customer service? If the companys current customers have significant trouble with the company, dont assume youll be different. Go to a different company.
Student credit cards can be an excellent foundation for your credit rating, but be choosy about which ones you sign up for. The right cards will help you to build a sound financial future. The wrong cards will saddle you with hundreds of dollars in fees and thousands of dollars in extra interest payments. Do a little research before you choose student credit cards, and youll know which card offers to choose.
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Find more information regarding credit card application, visit www.getsmart.com/credit-cards.
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