Undergraduate Credit Cards: Choices, How to attract, Benefits and drawbacks

These days, credit cards for students are becoming quite popular while they enable them to get the benefits of cards with low interest rates. Actually, some cards do not really charge almost any fees. In addition to the benefits, the cards also help the students to construct credit. Nowadays, you will find numerous such cards to choose from, such as for instance secured, unsecured, merchandise, and prepaid cards. But, you must always choose the one which suits you the most. Along with, you should also remember that credit cards come along with plenty of financial responsibilities. Therefore, you have to use them wisely.

Unsecured

It’s a kind of card that doesn’t require any cash deposit make purchases from a simple type of credit. This kind of card for student offer limited or normal credit, but certainly is the most preferred selection for the students. Actually, it’s been designed in ways to greatly help student to boost their credit profile. An additional good aspect about this sort of card is that it offers 1% cash back as a bonus amount on each and every purchase you make through it. In addition, the card doesn’t come along with almost any annual membership fee. At the top of that, it even has an extra 25% reward when the monthly bill is cleared on time. You can redeem the reward via a check or straight into your account. Moreover, this sort of card doesn’t put any limit to the quantity of money one can earn.

Secured

That is a type of card that fetches money from an account shared by your cardholder. Reliable and good secured cards always submit a depth of one’s payment record to credit bureaus in order to enable you to build credit. The important points of one’s payment record are submitted to three chief credit bureaus and email or texting are used to send monthly payment reminders. This type of card usually charges around 20% of annual percentage rate (APR) on purchases, but doesn’t charge any annual membership fees.

Prepaid

Prepaid cards are quite much like a secured one and it also incorporates a checking account. As its name suggests, in this sort of card spent the funds that you deposit to the card. Because of this, the monthly fee associated with this specific card is fairly nominal.

Important Guidelines To Help College Students To Get A Credit Card

In earlier days, it was quite simple for college students to get credit cards as there have been many sources available. There have been a lot of companies who would offer free cards to students just by filling applications. Unfortunately, in February 2009, Credit Card Act of 2009 came into existence and made very strict new rules regarding students to qualify for a card. Now, the rules have totally changed and are so very hard that students find it hard to qualify. Before going to acquire a card, students are supposed to understand many things about the qualification and related stuff, following are few guidelines, you can have a look.

· Firstly, study about credit cards, how it works and such other things. Further, you even need to comprehend the due dates, what are the billing procedures, late penalties, limit fees, how to boost your interest, ways to prevent any additional charges and a number of other card related queries.

Comparison of different kinds of card schemes and offers for college students can also be a significant task. You would find dozens of card companies offering cards to college going students. As no two companies are similar, you would find each company with different group of rules. Interest rates, benefits and charges of each company differ with another. You need to occupy the responsibility of selecting one company that suits your requirements. Try to find benefits yourself and avoid additional costs with a couple benefits.

If you do not have sufficient credit, then you may get a different form of credit card called Subprime credit card. However, they’re many additional charges on most of these costs. In earlier days of such card, there clearly was around 75% of limit on credit cards, now it is 25%. You can see there’s plenty of difference.

While selecting a card, make it a point out check whether your company is reporting to the big credit bureaus or not. Equifax, TransUnion and Experian would be the three very big bureaus which may assist you to in enhancing the credit score at a later stage.

Every time a student enters his/her college premises, he or she is flooded with offers from credit cards companies. These cards for students build a sense of responsibility, make sure they are comfortable and make them to improve their credit as well. There are lots of advantages of owning such cards; nevertheless a student has to be very careful in handling a credit card as he/she has to comprehend concerning the debt factors of a credit card. We’ve laid down some advantages of having a credit card with students; refer these points to understand about it.

After the introduction of new laws regarding student credit cards, there have been many limitations for students to qualify for a credit card. However, according with a  sources it is known that students of today are carrying lot of debts because of the credit card facility. 상품권 현금화 These debts even carry forward following the student leaves college. Besides having many advantages, credit card for student carries plenty of disadvantages too; let us have a review of them as follows.

Too many cards as well as debtors: According to a survey in 2009 done by Sallie Mae, it was found that students are wholly influenced by a credit card nowadays that will be never a good thing. It is really a known proven fact that about 84% of college students are having the advantage of getting at the least one credit card; while the average is about 4.6 cards. Clearly, this means when a student is having one card, they can spend around $5000, and similarly they can spend around $15000 with 3 credit cards. As we know that interest rates are blooming these days, it is quite obvious the debt amount increases drastically.

Too much balances: This is actually probably the most problematic situation that came across Sallie Mae; it was that $3173 was the mean balance of credit cards being carried by college students. It absolutely was shocking to understand that figure was the greatest among all other figures. This shows that students are not using the cards for convenience purpose; instead they’re misusing the given advantage and are going beyond their limits.

These cards for students as well as loans: That is also another burdening disadvantage since the debt of the students is carried forward to the coming years which become a loan debt. It’s very sad that the students need certainly to take the responsibility of paying it just after their commencement of careers. According to Sallie Mae’s study in 2009, 23% of the students remained unanswered when asked about their loan payments, while the answers of another 77% had no experience of the debt loan.

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