College Student Credit Cards

College student credit cards can be found everywhere on a campus. It's one of the simplest temptations for young people to fall victim to. All it takes is some information and a signature to get a wallet full of "money." So many students have found themselves deep in debt by the time they graduate. They have already compromised their future by injudicious use of college student credit cards. On the other hand, having this method of payment can mean the difference between making it through higher education and having to drop out. The secret to using college student credit cards is to create a plan and stick to it. The starting point, however, is choosing the right creditor and account.

When applying for a college student credit card over the Internet, applicants will have the advantage of being able to compare interest rates and terms from different companies and finding the best deal. It is especially helpful to use a comparison website. These sites will let applicants search for a card with particular preferences then provide a list of links to cards that match. Here are some things to look for as far as preferences. Consumers need to know what the APR or the annual percentage rate is. That is the rate over the course of a year. It will be higher than the daily or monthly percentage rate. The APR is a good comparison figure.

Cardholders also need to be aware if the company charges late fees for late payments on a college student credit card. It's important to know the amount of these fees as well. Compare the amount charged by each company. They will differ. Find out if the college student credit card interest will change if the cardholder sends in a late payment. Some companies will raise the interest rate if a payment is late. It's also necessary to know the interest rate the companies charge for a cash advance. That is an important figure if a cardholder plans to get cash at certain times.

"A good man sheweth favour, and lendeth: he will guide his affairs with discretion" (Psalm 112:5). Not everyone who lends does so out of good. Unfortunately, companies are just out to make a profit from lending. Young people need to learn this before getting into debt. College student credit cards can be a part of their financial education. How one manages credit cards now will establish a habit that will carry into work experience. Take time to sit down and plan the use of this payment method and keeping credit purchases to a minimum. This type of education is just as important as what is taught in the classroom. Cardholders need to take financial education as seriously as their career education.

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How to Help Your Spouse Rebuild Credit

You can help your spouse rebuild a credit score through specific joint debts. However, you should be conscious along the way of the fact that your spouse must take individual loans in order to truly build up a good credit report. Look for opportunities to take on debts together and separately so you can both have high credit scores in the future.

Share Large Loans

Large loans, like mortgages, should include both of your names. This will help your spouse build credit, and it will also help you secure higher limits if you each have an income. The lender will use your total income to determine your limits. If your spouse's credit is low initially, this will not matter if he or she makes less than you do. The lender will use the credit score of the higher earner to determine your terms.

Secure Individual Loans

Having joint loans is not enough to build credit. Ensure that your spouse is actively taking individual loans when the opportunity is correct. For example, ensure that your spouse has his or her own credit card, not just a version of your card with his or her name on it. If you are considering financing a small electronic device for your home, this is a good opportunity to allow your spouse to take on the debt alone.

Portion off Debts

If you have a certain degree of debts when you are married, balance these debts between your two credit scores. Neither individual should carry the bulk of debts. However, if your spouse has bad credit and is working to repay costly loans, consider taking on the debts in your name. This will save you money because you are likely to get better financing terms. It will also help immediately to rebuild your spouse's credit.

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Student Credit Cards Protection

Students, or any first-time credit card user, know that it's a fact of life that sometimes a new credit card will get lost or misplaced. To that end, many student credit cards have an added zero liability protection feature for any unauthorized purchases made on the card. While it's not a perfect solution to the problem of lost or stolen credit cards, it does make student credit cards that much more attractive as a financial option for young people concerned about the problem.

Any teacher knows that students have a tendency to lose things. Students misplace their books, clothes, keys, iPods and just about anything they lay claim to. Even homework has been known to go missing. Credit cards for students tend to get misplaced, lost or stolen as well.

According to a recent study on student credit card use, students are now carrying credit cards in record numbers. Up to 83% of all college students as of 2001 carry a credit card. This fact certainly won't change any time soon. Given the current availability of online shopping opportunities for students and young people from textbooks on Amazon to music on iTunes, along with the convenience of paying with a credit card, it's unlikely that student credit card use will subside any time soon.

But understanding how widespread student credit card use is leads to the unavoidable conclusion that lost credit cards, particularly by students, are inevitable. And with all of the concern recently regarding identity theft and ever-more prevalent financial fraud, a lost credit card can potentially become a very big issue.

Fortunately, most student credit cards currently available offer a decent solution. Often times, students do not have much experience with independent finances and real-world financial decision making. So putting a credit card in the inexperienced hands of someone with a wide variety of expenses that might include school books, clothes, food, gas, pizza, and entertainment may not seem like a wise idea, even considering the number of seemingly attractive options offered by some of the best student credit cards. Nevertheless, before you apply for a student credit card, either for yourself or for your favorite student, it's best to ensure that the cardholder has a firm grasp of some simple principles of budgeting and financial responsibility. But there's one feature built into student credit cards that can provide protection and peace of mind, which is zero financial liability in the case of unauthorized use.

According to the Electronic Protection Act, credit card companies are allowed to charge liability fees on unauthorized charges made on any credit card up to fifty dollars. This holds true as long as you notify the credit card company within 30 days that the card is either missing or stolen. Once you notify the company, you can't be assessed any more penalties for charges made on your card, but all charges up to $50 made before you let the card issuer know that your card is missing will have to come out of your pocket.

Many of the top student credit cards, however, will not apply that minimum liability charge, assuming that you report the card lost or stolen within thirty days. Admittedly, this isn't a perfect solution to the problem of identity theft or unauthorized card use, and you may still face non-financial repercussions in the future for any purchases made on your card. But before you or your favorite student gets used to carrying a credit card for the first time (as many student credit cards are), there are bound to be a few careless misplacements. And it's nice to know that credit card issuers have taken this fact of life into account regarding student credit cards.

So yes, students may lose things, and unscrupulous people on campus just might try to take advantage of this fact. But with a good student credit card (and, of course, a dose of financial realism to temper it), unauthorized charges and identity theft becomes much less of a problem to worry about -- although you'll still have to find your homework.

Cash Back Credit Cards: The Deal is in the Details

Cash back credit cards: do they really work? The simple answer is yes; the longer answer is that in order to make the most of them, you’ll have to pay attention to the details. If you can stay on top of your credit card payments, and use the card wisely, you will definitely benefit from a cash back credit card. The key is to look at the fine print. Here are some tips to help you get a good amount of cash back.

Check the Percentage Rates

When cash back cards first began, banks usually offered customers 1 percent back from the amount they spent. So if you spent $500, it seemed like you could expect to get $5 back. Many cardholders did not realize, however, that the full 1 percent usually did not start until a certain amount had been spent on the card. Many of these cards worked on a tiered basis, meaning that you would not actually receive the entire 1 percent cash back until you had piled a few thousand dollars on to the card.

Fast forward to today, and you’ll still find that many credit cards operate on this system. If you read through the fine print, you can find out the limits involved before applying. You can also check for special deals. Some cards will give you 5 percent cash back every time you use the card at the grocery store, or for gas, or for online shopping. So make sure you know what you really will be getting back in cash before you sign up.

Look for Fees

Many cash back credit cards do not come with an annual fee. Even so, you’ll want to check to see if there are any extra fees involved. Some of these cards come with a higher interest rate than most cards. If this is the case, check to see if you’ll be paying off the balance each month. If you can pay off the balance each month, you’ll greatly benefit from the card. If you can’t, you might want to look for a low interest card instead.

Set up a System

Using a cash back credit card works best when you keep track of your purchases, make sure you get the highest percent of cash back possible, and pay off the balance each month. To add one more step to your benefit plan, think about what you want to spend your rewards on. Check each month to see how much money you have accumulated, and plan what you will use those rewards for. Then when you receive a rebate check, you’ll know right where to put it.

For those that can carefully manage a credit card, the cash back system is a great find. It gives you all of the benefits of a regular card, and lets you get a little cash back at the same time. So if you apply for one, think about using the card, and the rewards that come from it, as best as you can. You’ll find that the deal with cash back credit cards is really in the details.

Crushing Credit Card Debt

by David Berky

How much do YOU owe on your credit cards?

The average American family is now over $7000 in debt just on their credit cards. That debt generates an interest charge of over $105 each month if your card charges the average 18%. If you have missed a payment or made a late payment (even by one day!), you may be paying up to 27% interest or over $157 each month.

Most credit card companies require a modest payment towards the card balance. Modest meaning from $10 to $20 a month. To pay off a $7000 debt at $20 a month you will not pay off this debt for 29 years.

And what about those interest charges? Paying off a $7000 credit card debt charging an interest rate of 18% and paying $20 a month towards the debt, you will pay over $18,400, more than TWICE the original debt, just in interest.

What if you have more than one card? What if your debt is over $7000? What can you do? How can you get out of this hole?

There are some techniques that can help you pay off your debt and do not require expensive loans, invasive credit checks, or expensive financial planners and accountants. You can also save on interest charges by paying off your debts in a certain order.

The most effective technique is sometimes called the "snowball" method. The snowball method suggests that when you pay off one debt you apply that payment amount to the next debt. Thus the amount you pay on a debt grows like a snowball rolling down a hill.

For example, you have three credit cards with debts of $5000, $4000, and $3000 which are charging you 18%, 27%, and 12%, respectively, and you are paying $150, $125 and $100 each month. By paying these required monthly amounts you will pay off your $3000 credit card first.

Now that the $3000 card is paid off you have an extra $100 a month. Put that extra $100 toward paying off your next credit card debt. Now you are paying $225 a month on the $4000 card and the $150 on the $5000 card. With this accelerated payment on the $4000 card you will pay off the card earlier and save some money on interest charges.

Then apply the $225 payment to the $5000 card for a monthly payment total of $375. Soon this card will be paid off and you will have $375 extra each month to pay off other debts or better yet, INVEST!

So, which debts should get paid off first?

Generally, you want to pay off the debts that are charging you the highest interest rates first. In the above example you could have added the $100 payment to the $5000 credit card rather than the $4000 credit card. But the $4000 credit card is charging you 27% where the $5000 credit card is charging 18%. By paying off the card charging the higher interest rate first, you will save some money on interest charges.

If this sounds too confusing, you can enlist your computer. You can search the Internet for the keywords "debt reduction calculator" or you can visit http://www.simplejoe.com/debteraser/index2.htm and review a product named Simple Joe's Debt Eraser.

Simple Joe's Debt Eraser helps you create a Rapid Debt Reduction Plan that is customized to your debts and your situation. Just enter your debts and the amount you can afford to pay each month. The software will create a plan telling you how much to pay towards each debt each month until they are all paid off.

You CAN pay off your debts. The trick is to stop charging purchases to your credit cards and develop a debt reduction plan. Your plan should include "snowballing" your payments and prioritizing the debts by high interest rate.

Low APR Student Credit Card - 5 Alternatives

Students entering college today know that they have their work cut out for them. Given the high cost of going to college these days - due to increasing cost of living, tuition raises, and less governmental help - most students who are interested in merely partying their way through college need not apply.

Rather, students have to work hard on many fronts just to keep their heads above water while in school. That includes not only making good grades and staying involved with extra-curricular activities, but also paying the bills.

For the past 2-3 decades, many students have been turning to credit cards as a way to pay for daily and weekly expenses such as food and gas, as well as for less frequent expenses such as books and other study materials.

Today, there is a growing awareness that too many students are graduating with thousands of dollars in credit card debt. On top of that, the U.S. Congress has made it harder to qualify for a card. These days, a student seeking one will need an adult co-signer just to qualify.

Still, some students recognize that having a card can serve as a great backup just in case they need to pay an emergency expense. Those students want a low APR student credit in their wallets, just in case. Looking for a low APR student credit card? Here are 5 alternatives to having one:

1. Go with cash-only:

One option is for you to give up the idea of a card and just go cash-only. This is a sure way to keep you out of debt. However, it will leave you vulnerable in the face of emergency situations when you need to make a large purchase (think medical issues or car repairs).

2. Carry your parent's card as a backup:

Another option is to ask a parent to have one of their own cards issued in your name. You can promise to only use the card if absolutely necessary. And, your parents can monitor your use by reviewing their monthly statements.

3. Get a co-signer to help you attain a credit card but only use as a backup:

College students have another option. You can enlist an adult you know - it could be a parent, an uncle/aunt, or a friend - to co-sign on your card application with you. But, make sure the person whom you ask for this favor knows and trusts you well, since they will be responsible for the bill if you become unable to pay.

4. Use a prepaid debit card for emergencies only:

A prepaid debit card is a relatively new innovation. It looks and acts like a credit card: it even carries the popular symbol of Visa, MasterCard, or American Express. However, these cards are a little bit different. When you purchase they already have a certain amount of credit on them. Every time you use the card at a merchant, that amount is debited from the card. There is no application required, no credit check needed and it is impossible to run up a big balance.

An alternative to a credit card is to get a prepaid debit card and then to keep it only for emergencies.

5. Use a prepaid debit card on a daily basis:

Similarly, you can use a prepaid debit card on a regular basis, using it for everyday purchases.

Consider these 5 alternatives to getting a low APR student credit card.

Good Credit Cards for College Students

Good credit cards for college students will keep costs low while still developing student credit. Look for a blend of these two features when selecting the card that works for you. It is also wise to look for added bonuses you can use in your specific situation to reward good spending habits.

Avoid Prepaid Cards

Prepaid cards may appear to be a good option because they have no interest rates. However, you will still pay a fee each time you add funds to the card. Further, in return for this fee, you gain no positive credit report. Since there is no actual loaning of funds in this example, the credit card company will not report the debt to a credit agency, and you will gain nothing from paying your card on schedule.

Choose Cards with Deferral Options

As a college student, you will likely fluctuate between periods of work and study. On breaks and in the summer, you can earn money with brief periods of employment. However, when you are in school, it can be very hard to continue to make payments on a credit card since you are not likely earning a large salary. In this case, a good option is to elect a card with deferral options where no interest is charged. Look for cards that allow you to defer payments in six-month periods without any additional compounding of interest.

Gain Spending Rewards

Many banks and lenders offer specific student credit cards that reward you where you need it most. For example, you can locate a card that will give you cash for airline tickets, books or campus meal plans. Look for a reward program focused on the items you need most. You may find student cards can help pay for necessary expenditures through these reward programs.