Credit Cards For College Students Article
Credit Cards For College Students
Offers for credit cards for college students deserve close
scrutiny!
Everyone knows that their credit rating can significantly impact their
lives. A good credit rating results in better lending rates, when you
need to apply for a loan and can even make a difference in your
employability.
Just thirty years ago, credit card companies were handing out credit
cards like candy. You'd receive credit card offers with low interest
rates and a sky's-the-limit line of credit. At the time, credit cards
for college students was a primary target group. Such offers were mass
mailed and all you needed to do was sign on the dotted line. Almost
everyone jumped on the bandwagon, buying those desired items they
couldn't pay cash for, but could make a monthly payment. How convenient!
If you're a college student and receive such offers of credit cards for
college students, talk to your parents. See what their experience was,
so many years ago. It's likely you'll hear that, when they 'took
advantage' of their own credit cards for college students offers, they
bit off more than they could chew. The generous lines of credit tempted
many to live beyond their means. Eventually, the cardholder ended up
with too many credit cards and just as many minimum payments they
couldn't come up with at the end of the month. The final result? The
cardholder spent years paying it all off. Not a good plan!
Unless you were raised by an accountant or tax man, if you're young,
you may not have a good handle on your finances. If you see a
great pair of shoes or a video game that's on sale, it's likely that
plastic comes out of your wallet and you walk away with the goods.
However, the bill does come at the end of the month.
It's unbelievable, but nonetheless true, that offers for credit cards
for college students are as abundant as they were thirty years ago, but
such offers no longer have what you'd call an attractive APR. Fees are
substantial for late payments. A single late payment most often results
in an even higher APR.
Some credit card companies may not require much information from you
before issuing that card. It's up to you to read all of the fine print
before you accept the card. Such agreements are printed in a very small
font and are several pages long. These little brochures are designed to
be of little visual interest, stuffed in the envelope along with glossy
four-color offers for other services. They're hoping you won't read the
agreement!
Be smart when you shop these credit cards for college students. Read
the cardholder agreement carefully. Don't regard that card as a
windfall of cash. It isn't. Be prepared to pay it off each month. If
you must max it out for emergencies, make at least three times the
minimum payment, to avoid having your balance increase instead of
decrease. If you're smart, a credit card can be a good thing!
Next page: Credit Rating
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