Credit Card Tips

Student credit cards are the best way for a young person to establish credit in his or her name.  You can apply for student credit cards as soon as you are 18 years old as long as you are a full time student.   In some cases, students can have their parents co-sign for their student credit cards so that they can establish credit in their own name with a parent co-signer. 

Most student credit cards are for very low balances or are pre-paid cards.  Pre-paid student credit cards are the best option for a student to establish credit.  They have a balance that has already been put forth and are basically secured credit cards.  They are easy for any student to get and can help them establish credit in their own name. 

Another way that students can establish credit is by using gas cards.  Gas cards are credit cards that are used just for gas stations.  They are generally easy to get and a good way to establish credit.  Once the gas cards have been paid off regularly and are not overdue, the student will have found that he or she has credit in their name.  It is easy as long as they pay off the balance each month. 

Teach students how the credit card game is played and how they can win.  The one way that anyone can win the credit card game is to pay for only what you can afford using credit cards.  Credit cards are a convenient way to make purchases and can also offer you buyer protection.  If you purchase something online, for example, you are protected if you use credit cards.  If you do not use credit cards and make a purchase online, may be out the money if the item is defective or you are not satisfied with the purchase.  Many credit cards offer you a guarantee if you use the card.   If the item is defective, you can then return it and be assured of getting a refund.  Even if the store is not agreeable to a refund, the credit card company will dispute the purchase. 

Students should be taught how to use credit cards and play the credit card game but not be encouraged to spend more money than they can afford to use each month.  When the student credit cards are due, they should be paid off immediately. This is the same with any type of credit card.  There should be no delay so that you can avoid late penalties and interest fees – both of which can be substantial. 

Many people are afraid to use credit cards because they feel that they will get into a credit card trap.  This is not true.  Credit cards are convenient and can offer you buyer protection.  You just have to be sure to be prepared to pay off the balance of the credit cards when they come due and not to exceed your borrowing limit.  Students who get student credit cards should learn how to play the credit card game and build their credit at the same time.   By doing this, they can establish excellent credit in their name, never exceed their spending limit and win the credit card game. 

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Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the workflow associated with the use of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt.

Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges.

However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings. Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount.

If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too. Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control you’re spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

Uchenna Ani-Okoye is an internet marketing advisor and co founder of Free Affiliate Programs

For more information and resource links on credit visit: Bad Credit Student Loan
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Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

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