Erin summer fun

Know about college student credit card and benefits of using college credit cards.

Wednesday, November 29, 2006

Student credit card guidelines

If you're a college student, you know how expensive books, movies and tuition can be. Fortunately, a student credit card can help. To get a student credit card, follow these guidelines:


Credit card companies often set up tables and booths at college fairs. Be sure that the cards you're considering are specifically student cards. Credit cards aimed at students tend to have more lenient credit score and credit history criteria, and they also tend to have lower interest rates.


Not all credit cards are created equal! Since your student credit card is probably your first, educate yourself a bit about the terms and jargon you'll encounter. Choose one with a low interest rate, since that's the "extra" amount your credit card will tack onto your balance each month. Other things you should look for is a card with no annual fee and a low late payment fee.


You'll need to reveal all the basics, like your name, current address and phone number. The application will include lines for information about your school, your school's address, your enrollment status and your year of graduation.

Thursday, November 23, 2006

What every Parents Should Know

Sending your child to college can be quite exhausting. The issue regarding the use of credit cards for college students is not surprising. As a parent, it is your responsibility to explain to your children the ins and outs of owning a college student credit card-the responsibilities and the consequences that they may face if they go over the limit of their college student credit card and failing to pay their financial obligations on time. So what are the best options for a college student credit card for your child? You may start on those credit cards with modest spending limit. Keep in mind that you will be the one to pay for their credit balances anyway, thus it is ideal if you will provide them college student credit cards with minimum credit limit.


Much higher APR, which can probably increase by as much as 100 to 150 percent of the introductory APR? If that will just be the case, it is much better to look for college student credit cards that have APR a little bit higher for the first year yet consistent on the succeeding years.


It will just be a disadvantage on your part if you will get college student credit card for your child that offers rewards or financial incentives. It will just entice your child to make more and more purchases using such card, which will result on financial burden of paying for high accumulated credit balances. In addition, it is better if you will get credit cards that can be managed online so that you will be able to see what your child is doing with his/her credit card and know if their credit account is now in trouble (the credit balance almost exceeds the prescribed credit limit).


Providing the needs of your child going to college is not as easy as giving them the college student credit card that they need.

Wednesday, November 15, 2006

Holidays bring onslaught of debt

Select the right credit card

With the holiday season quickly approaching, shopping malls will become flooded with saccharine-sweet holiday themes accompanied by the persistent beeping at the checkout stands. Cash, credit or debit? Would you like financial debt with that?

Credit card debt is a major concern this time of year. Students can be at a higher risk than most, as they are key targets for credit card companies.

Bob Maloney, accounting chair at UAA, said that credit card companies know that most students will usually run up balances on their cards without paying initially only to have their parents bail them out later. If payments are not made, the results can have long-lasting effects for students searching for a career.

“More and more companies are running credit checks before employment,” Maloney said. A poor credit rating can translate into getting passed over for a job.

Maloney said that using a credit card responsibly is a good way to build credit, but that there are some guidelines that should be followed.

“Don’t finance lifestyle changes,” he said. “Purchase durable goods only. You don’t want to pay for something that will be used up before it’s been paid for.”

There is a plethora of good Web sites available to keep students informed and up to date on using credit cards safely. Citibank’s Credit-ED site covers the basics of credit card safety and encourages students to keep up with their credit history and to make sure it is accurate by checking it once a year.

This can be done without cost, thanks to the Fair and Accurate Credit Transactions Act, which requires that every state offer residents an annual free credit report from each of the three major credit bureaus – Equifax, Experian and TransUnion – by visiting www.annualcreditreport.com.

Safely using a credit card and avoiding debt also requires researching what card has the most to offer. Surprisingly, commercials featuring pillaging barbarians, MacGyver or strong narration are not the most useful source for students seeking information about interest rates and annual fees.

Credit Card Assist’s student section of its Web site provides a list of “a variety of the very best student credit card offers available from the world’s leading credit card issuers” with reviews and information. The Citi Platinum Select Card for College Students was the site’s top pick because of its 0% introductory rate, benefits – including fraud protection, travel and emergency assistance services, auto rental insurance protection and travel accident insurance up to $1,000,000 – no annual fees, and student discounts at select stores. Good credit history is required and a warning was included in the review that since it has platinum status, the card has a higher interest rate, which can lead to higher expenditures if the monthly balance is not paid.

Debt is not the only danger of having a credit card. Identity theft and fraud have become much more frequent over the years, and knowing how to avoid potential risks is vital. A booklet published by the Center for Student Credit Card Education Inc. encourages students to be wary of possible dangers. Carrying a credit card that has a photo ID, knowing the billing cycles of card companies and purchasing online only from encrypted Web sites are just a few ways to avoid having a credit card and personal information stolen. Should an identity theft occur, the CSCCE advises filing a police report, contacting the three major credit bureaus to be placed on fraud alert, obtaining credit reports, closing accounts, and contacting the Federal Trade Commission.