College Credit Cards – Smoothing Out Your First Credit Wrinkles
College student credit cards have replaced student loans as a freshmans first experience with student credit. At the sophomore level, out of a sample of 100 students, over 90 are found to hold at least one college credit card. The question is why do many students find themselves in a vicious cycle of debt with their college credit cards? Why are they astonished with the huge bills they receive each month? Most importantly must it necessarily always be this way for a college credit card user or is there a simpler way?
There are plenty of statistical indicators to suggest that students run up credit bills regularly yet they do not pay down their card balances nearly enough. Approximately 21% of college credit card users have balances between $3,000 and $7,000. The number of credit cards in an average students possession keeps increasing a sign that they might be acquiring new cards to pay off balances on old ones. But this only leads inevitably to their overall credit balance increasing even faster, adding more debt to a seemingly never-ending downward spiral of debt.
Five Steps to Avoid the College Credit Card Debt Trap
The core reason of this pathetic plight is the absence of a disciplined and planned system of spending. If you, as a student, wish to optimize the use of your college student credit cards, use the following guidelines to plan your spending:
- Pay your bills on time. Late fees are the most unnecessary source of additional credit expense. Always ensure that at a minimum, you always meet the minimum payment on your bill. Ideally, you should try to pay more than the minimum amount to reduce overall charges.
- Use the 20/10 rule. Be careful that you never, ever borrow more than 20% of your annual net income and never spend more than 10% of your monthly income on your monthly payments. In other words, balance your credit budget to avoid irregularities in monthly payments.
- Plan your credit expenditures. With college credit cards at your disposal, it is easy to give in to the temptation of impulse purchases. This can lead to ever increasing credit card balances
over a long period. It is ALWAYS better to plan purchases using your college credit card so you can ensure you only make purchases that you know you can easily pay off.
- Avoid cash advances. The finance charges for these are generally much higher than standard credit purchases and can be very expensie.
- Avoid approaching your credit limit. There may be extenuating circumstances that will require you to incur unplanned expenses, but if you stay well within your credit limit by avoiding unnecessary charges, you can enjoy the satisfaction of knowing that you can comfortably use your card when you really need it.
The Boon or Bane of College Credit Cards
If the guidelines outlined above are kept in mind, you will find that you can live comfortably with college student credit cards. These tips are especially useful for those who envision needing an extra job in order to pay your off credit card bills. Ideally, a balanced credit budget and a zero card balance is the best way to handle your credit card expenses. So, while college credit cards can be extremely helpful to certain individuals, they can also prove to be a huge detriment to those who do not budget and plan to use them accordingly.
Rebate credit cards have proven recently to be a great favorite among consumers. Credit card rebates could mean youre getting discounts whenever you use your rebate credit card for purchasing items of any kind for that matter.
Credit card rebates are similar to cash back credit cards with which you could accumulate points towards a rebate structure. This is based on how much the card is used over a period of time and depending on the different kinds of rebates and promotional offers that are awarded on the rebate credit cards in question. Typical credit card rebates include gasoline rebates, entertainment rebates, store discounts for specialty store cards etc
Some credit card rebates, however, require annual fees varying by the card providers. You should pay attention to compare annual fees and interests before you set your heart on a particular rebate credit card. Credit card rebates are given for making purchases with your credit card. The more you use the cards the better rebates and cash rewards you get. But keep in mind that these rebates exclude interest and finance charges. Some cards offer a higher credit card rebate with increased usage while still others offer higher credit card rebates at selected stores or partners only.
Credit card rebates could be earned in many ways right from your everyday grocery-shopping, to purchasing the latest fashion, or even by linking your credit card with other cards. For example, with gas prices at record levels, gas rebate cards are the hottest credit card rebates on the current market. The credit card rebates have few strings attached and offer appreciable savings; with an average credit score, credit card rebates are a true value. Some rebate credit cards directly deposit rebates into your savings account. Depending on the types of the credit cards and the varying providers, the rebate amount differs.
Bear in mind to always be aware that the average APR depends on your credit history. Unless you maintain good credit history paying your bills each month, you may end up spending your credit card rebate and then some in higher interest costs. Be aware of all the possible restrictions while using the credit card rebates; as Ive mentioned earlier, read the fine print. Also understand the limits on how much rebate you can get back from your rebate credit cards annually. Most credit cards require as well that in order to get your full rebates, you have to go by the primary policies of the credit card that you apply for. The credit card companies spend millions in marketing efforts to get new customers, so take good advantage of the competition by shopping around for the best interest rate in the credit card rebates.
A credit card is a financial tool that is more convenient to use and carry than cash that offers valuable consumer protections under federal law. Equally, it is also a major responsibility to use carefully, not ending up owing more than you can repay, damaging the credit rating or creating problems difficult to fix. Shop around and compare the annual percentage rate, grace period, annual fees, transaction fees, other charges and other credit card benefits to get the best credit card deal before you make your decision would be a smart choice, as credit cards often come with a lot of fine print.
As such, as with any credit card, the card issuer has all rights to change the fees and features, as well as rebates on any short notice. The credit card rebates usually last only for a limited time and apply only to certain regions or merchants or purchases. If you decide to get a rebate credit card, be sure find a renowned provider for the best customer service and reliability.
Financing to Buy Your Dream Car even with Bad Credit
You may have always dreamed of racing around the city in a brand new sports car of your dreams but the financial burden has kept this more cherished dream unfulfilled. You may have thought about financing your dream car, but the banker refused your loan application because of your poor credit history. A poor credit history happens often due to a default in monthly payments of past loans, redundancy in a possible financial transaction you have made, or for an issue of a county courts judgment that was against you. There are a lot of people out there with poor credit profiles and for them a bad credit car financing is certainly great news.
A bad credit car loan is a type of loan that is given to people that have a poor credit score in order to pay for their vehicle. Since the lender is at a higher risk for these sorts of loans, the interest rate that is charged is higher in comparison to other types of loans. Aside from that fact you need to do a lot of additional convincing to get yourself a poor credit car loan. the chances of getting a loan is higher if you are willing to provide the lender with a form of collateral.
Since there is a growing population of people with poor credit histories, there are specialized lending companies that have risen up to provide the poor credit auto loan. These companies provide you a loan not on the basis of your past but they take your current financial situation into consideration. It is very important to keep in mind that a poor credit auto loan is likely to be charged highly when being compared to a normal loan. This rate of interest does vary however from lender to lender.
People that have a need for a poor credit car loan would do well by searching the various proposals that are available to them in the market right now. The best possible way to do this type of research is online, since it takes you a considerable amount of time and money in the process.
There are a lot of websites on the internet which people can find out all of the information they need about poor credit auto loans. You could also apply online for your dream car on these websites and the lenders from there will take care of all the other formalities involved with getting the paper work done. You are only a few steps away from getting the sports car of your dreams. Take this opportunity while you still have it because in today’s world anything is possible and this could be the deal that gives you financial freedom when you will need it the most.
Airline Credit Card Frequent Flyer Miles – Reward Credit Card Air Miles
There is a difference between an airline credit card with frequent flyer miles or a reward credit card that offers airline miles. As when looking for any consumer product, it’s a good idea to compare the offers side by side.
Airline Credit Card With Frequent Flyer Miles
An airline credit card is for a specific airline. You earn air miles for every dollar you spend on that airline and your miles are routinely added to your frequent flyer account. If you have a preference to a particular airline, this would be the card for you.
The airlines generally have partners such as hotels, restaurants, and car rental agencies and you typically receive points when you use your card to purchase services from any of their affiliates. You may also be given a choice to spend your points to upgrade your flight to first class. Some airlines offer a special bonus of an additional ticket for each ticket your purchase at full fare.
An airline credit card generally carries a yearly fee, whether you use the card or not. They also tend to have higher interest rates, so if you’re not one to pay your balance in full each month, this may not be the type of card for you.
Reward Credit Card Air Miles
If you want a choice of airlines, a reward credit card with air miles may be what you’re looking for. You can earn bonus points to be used for air miles that can be spent on your choice of any airline. Most reward credit cards have no annual fee and lower interest rates than an airline credit card.
With air miles earned with a reward credit card, you are not allowed to apply your air miles earned with frequent flyer miles on another account. Unlike with an airline credit card where you can easily make last minute plans for your flight, generally a reward credit card requires a 21 day notice in advance and a Saturday night stay. Reward card airline miles are often limited to the continental U.S. or a specified zone.
For an international traveler, an airline credit card with frequent flyer miles could be just what you want. Those airline miles can mount quickly. However, if you are just hoping to earn enough points for a short vacation within the U.S. or a specific area, if you use your card for every day purchases and pay the balance each month, to earn free tickets, a reward credit card with air miles would be more suited for you.
Be practical when reviewing your personal needs and financial situation before choosing between an airline credit card with frequent flyer miles or a reward credit card with air miles.
College Student Credit Cards – How to Build Your Credit
Credit cards for college students are easily available online. The downside is that card issuers realize that most students do not have a particular credit strategy in mind, just a desire for easy access to credit.
Card issuers are keenly aware of how to market their products to college students and young people in general. Because of the lack of an established credit history or credit profile, credit cards for students are often more expensive to maintain than traditional credit cards. Subsequently, credit cards for college students often have high interest rates, annual fees, as well as other fees attached. If you are a college student with good credit, you should not have any problem getting approval for an attractive card offer. Unfortunately, many students do not have good credit history, or any credit history at all for that matter.
Shopping for a College Student Credit Card
The first 3 steps when shopping for a credit card for a college student are quite simple: research, research and research. You can easily begin your search online where you can compare and contrast card offers from all of the leading card issuers. This will give you a huge advantage when shopping for the right card offer because you can get a very clear picture of what the cards offer in terms of features and benefits as well as what the card will cost you over time. Thoroughly researching each card offer will help you save time and money, and ultimately, should help lead you to the very best credit cards for college students available anywhere.
College Student Credit Card Specifics
A typical college student credit card offer might include the following:
-0% APR up to six months on balance transfers and purchases
-Zero liability on unauthorized purchases (a “must have” in any credit card offer)
-No annual fee
-Online account management
-No co-signer requirement
Most of the best student credit card offers will provide you 6 months of 0% APR on purchases, which is an attractive feature for many cash-strapped students. Don’t be misled by this offer, however, because the ongoing APR on these student credit card offers jumps up significantly when the introductory offer expires. So buyer beware!
All credit card issuers will provide you with a zero liability on unauthorized purchases clause on their respective card offers. Just be sure to double-check that the card offers this feature as it is very important to have for security purposes. You should also try to avoid paying an annual fee for any credit card, if at all possible. Many of the best student credit card offers will not charge you an annual fee either. Some student credit cards will not require a co-signer from your parents for approval. But don’t count on it. The more attractive card offers will also feature an online account management tool that allows you to quickly and easily manage your account, view statements and pay bills online.
One very important thing to keep in mind, however, is the regular ongoing APR for student credit cards tends to be very steep so it is highly recommended that students (especially) avoid carrying a card balance for any extended length of time. It is best to never carry a card balance, ever. How do you avoid carrying a credit card balance? You pay it off every month. That is quite simple the single most valuable piece of advice on how to use credit cards of any kind, and if adhered to, will help you avoid racking up debt and potentially devastating finance charges that can be ruinous in the long term.
Advice When Searching for Credit Cards
So be sure to thoroughly research as many student credit cards as possible, and do not stop your search after investigating only a few card offers. Be vigilant and persistent in your research of credit cards for college students or any credit card offer for that matter. And remember, avoid carrying those card balances!
When most people think about credit cards, they first think of a rectangular piece of plastic that is physically swiped in a machine when you make a payment. In recent years however, there has been an increasing trend towards borrowing on your account without actually using your card, originally by quoting your account number over the telephone, and more recently when shopping online.
Add to this the ability to withdraw cash using your card, and nowadays a credit card account is perhaps better thought of as a more general line of credit you can use in many situations, rather than simply a convenient payment method. Credit card cheques are a natural extension of this idea, but they have attracted a fair amount of controversy – not least over the amount they cost.
Credit card cheques are similar to a traditional bank cheques in that you make them out to the company you’re paying, and sign for the amount to be taken from your account. Card issuers say they are useful for using your credit account in situations where plastic can’t be used – for example, paying a utility bill by post.
The crucial difference is that with a credit card cheque, you’re adding to your card debt rather than simply transferring funds from your bank account, and this kind of debt is usually significantly more expensive than that arising from general credit card use.
Firstly, most card issuers treat cheque payments as a ‘cash advance’ and charge a percentage handling fee of the amount of the cheque, usually at a rate of around 2.5%. This in itself makes the cheques a rather expensive proposition, but there’s more to come – the interest rate will also usually be much higher than the purchase rate of your card.
It’s not unusual for cheques and cash advances to be charged at rates higher than 20%, even if the purchase rate of your card is closer to 10%. While this difference may not seem significant, especially if your cheque was for a small amount, a process known as ‘allocation of payments’ means it can be very important indeed.
Each repayment you make to your card will be used to pay off your cheaper debt first. So, if you’re carrying a balance you built up through purchases, your cheque debt will effectively go to the back of the queue and will sit in your account, happily attracting interest at the higher rate. It’s not until you clear all your purchases and balance transfer debt that you start to repay the cheques.
This means that if you use cheques regularly, a significant amount of the interest you’re charged will be at the higher rate, and it will take much longer to repay your card balance, a fact which critics say isn’t made clear enough on the cheques themselves. This lack of clarity has led to calls for a ban on sending out cheques as a matter of course, so that a customer has to specifically ask for them to be issued.
So should you use credit card cheques at all? It’s not a cheap form of credit, especially if you are carrying a balance on your card, and this needs to be weighed against any convenience aspect. In any case, it’s perhaps a little ironic that after decades of being told that plastic was more convenient than cheques, some card companies are now saying the opposite – and profiting handsomely in the process.
Climbing Out Of The Bottomless Pit Called: Credit Card Debt
Credit cards are actually a loan in disguise. They are not free money. If this golden rule is understood it would prove to be the first step towards avoiding the never-ending credit card debt. Taking a credit means taking a loan from someone who has extra at this time when you dont. But this is the beginning of the credit card debt. Credit card debts come in handy while traveling and other expenses where cash is hard to find or hard to carry. Moreover it is good to have credit card debt limit free for times when cash is sparse.
Many people overspend on credit cards and end up in credit card debt. The vicious circle never ending high credit card debt interest start and finally leads to total loss of peace of mind. To avoid credit card debt some important note should be made about spending patterns. Credit cards should not be used for non-essential things neither should any spending via credits cards be unplanned. To avoid the credit card debt one should use credit only if repayment of the debt is ascertained. Impulse shopping on the credit card can be gross to your credit limit and start the vicious trap of credit card debt.
Beginning of the student life or college life is the starting point for the credit card debt. Every credit card company offers various student credit cards with different lucrative offers for students. Most of the student credit cards offer 0% for first six months, after the introductory period the regular period offers an APR of 16.49%. Usually offers on student credit cards do not have annual fee. Such offers help in avoiding the credit card debt if the student pays regularly each month and carries less revolving credit on their cards. Redemption of reward points against annual fee is another way of avoiding the credit card debt trap.
Credit card debt is a major cause towards losing credit ratings of an individual. Also credit card debt can vaporize the cash limit that may be required for a money emergency. One of the great ways to avoid the credit card debt is to pay bills promptly to keep finance and other charges to a minimum. Many people seek professional help to eliminate their credit card debt. Professional help is available in most of the western countries where people drastically suffer from credit card debt problems.
These professional help via internet and other agencies convince people that more than 75% of their debt can be eliminated. Moreover, they also provide help to prevent problems like bankruptcy and court proceedings which are an outcome of credit card debt. One can devise low monthly payment plus these external help also provide alternative solution for credit card debt management.
Credit card debt creates bad credit rating for an individual. Credit card debt creates penalties. It also provide a history to financial institutions and banks who can decline any further issue of credit cards or refuse a loan to consolidate the debts. Credit card debts also drive towards struggling repayments and demands from creditors.
Most credit card companies have designed one or more credit card packages that enable small businesses to keep their personal and business accounts apart. These cards, known as business credit cards, are appealing to many small business owners. However, regardless of what these business credit cards may offer, there could be some pitfalls that you need to be on the lookout for. Carefully shopping for the right business credit card is a must, if you want to avoid being exposed to the negative aspects.
Due to mounting competition in the small business credit card market, there is an interminable barrage of high-powered advertisements, extolling the virtues of the various business credit card issuers rewards programs, cash back features, airline miles programs and other benefits, to the point where they are all starting to sound very much the same. The implication for you is that you will need to do your own research in deciding on what is actually and practically the business credit card best suited to your small firm.
As always, the very best starting point is knowing how you will be using the business credit card. Do you plan to pay off all the business credit card charges monthly, or do you expect to maintain an ongoing balance on your account? The answers to these questions shall determine whether you should get a business credit card that has a rewards program or a business credit card that offers a low interest rate. For instance, if you plan to carry a balance forward from month to month, do not choose a business credit card with a rewards program. It will not work for you because any savings you earn via the business credit card rewards program will be offset by the interest charges that are imposed.
You should decide on what types of business credit card rewards will be most beneficial to your business. The rewards programs offered vary from frequent flyer miles to gift certificates to merchandise. Some business credit cards allow you to switch from one rewards feature to another when you redeem the accumulated points. Always make sure that you read the fine print. You may be tempted to choose a business credit card that offers low introductory rates, only to find out at a later stage that the business credit card company raised the rates. Check the applicable APR that will apply after the introductory period expires and compare the future rates with those of other business credit cards. One business credit card, for instance, may guarantee a 7.99% fixed APR after the introductory period expires, while another may impose a 14.99% variable APR.
Another factor that is worth considering is the degree of control and the extent of customer services the business credit card offers. There are business credit card companies that allow you online access to your business credit card account. Among other things, this will enable you to manage your account and download the transaction records for accounting purposes and for your tax reports. Online access allows you to modify or set spending limits on the business credit cards issued to your employees.
If you or your existing business has a good credit standing, you may want to call the business credit card company to negotiate a special arrangement for your business.
An airline credit card is one which rewards purchases with air travel miles or points which can be redeemed for them. Airline credit cards ideally fit a certain user profile. Typically users of airline cards are financially well off and travel frequently. But who else needs them?
Ideal Airline Credit Card User Checklist
Before deciding to go for an airline credit card you should check your credit history. If it is perfect or almost perfect, you can check off one of the requirements of the ideal airline credit card user checklist. If you pay your credit card debt on time, you fulfill the second requirement of the checklist. It is also important that your debts on other credit cards and other bills are paid one time. You are a big spender, and spend it through your airline card. Most importantly, the travel miles are useful or important to you.
Reasons for the Airline Card Checklist
Airline cards usually charge higher interest than ordinary cards. If you are not timely in your credit payments, you incur a lot of interest. Also if you do not have excellent credit ratings, you fall into a higher interest bracket and do not qualify for the lower APR credit cards. This makes airline cards very expensive to own. It is also important to pay other debts regularly, since the rules link you credit ratings across debts. What this means is, if you have a bad credit rating in relation to another credit card you own, it affects your credit rating in the airline credit card and you may have to pay a higher rate of interest.
If you are not a big spender and do not spend much through your airline card you will not earn enough miles to travel by air for a long time. If travel isnt interesting to you or is not incidental to your line of work, you may be better off looking for a low APR credit card.
If you do purchase an airline credit card, make the most of it, by using it whenever you shop. Also use your airline miles at the first chance you get. It is better to use your airline miles for long flights to make the most of them. Airline cards are used best when they are redeemed for airline miles. It is generally not worth it to redeem your airline card on other products.
Airline cards vary greatly in terms of their bundle of offerings. There are different APRs and differing credit requirements (but you must have good credit). Also some airline credit cards offer bonus air miles. Different annual fees are charged. Bank sponsored airline cards allow you to redeem your air miles through a number of airlines. With airline sponsored cards you have to patronize the issuing airline. An informed purchase of your airline credit card can lead to smart savings for some, and free holidays for others. Remember to combine the informed purchase with smart usage of your airline card. If you can choose and use your airline credit card wisely, the only negative effect you can expect is jet lag.
Credit card companies: the rewards, promos and services that make the difference
With so many credit card companies offering credit cards, the consumer market for credit cards has become one tough cookie to crack. To stay competitive, credit card companies offer various extra services, rewards programs and promos that would lure consumers to sign up with their company.
Rewards program
Most credit cards have a some sort of rewards program running. Rewards program in credit cards basically follow one set of principle. The more you spend and the more you see your credit card, the more points you will get. Often, there is a standard equivalent for every amount spent. For instance, one point is given for every, let’s say, 10 dollars purchase.
The points can be accumulated and later exchanged for a product or cash, whichever is being offered. Some banks even send out catalogs where their clients can see just what is being offered in exchange for their points. Some credit card companies even allow for half points-half cash scheme provided that it will be charged to the account.
Rewards program is actually a great and effective way not only to lure customers into the program but also to keep them there. And what is more they are encouraged to use their credit cards as often as possible.
Discounts in establishments
Some credit cards offer discounts when used in partner establishments. Some credit card companies even offer up to 20 percent discount. This discount scheme can be usually found in credit cards that target a specific niche market. For instance, if a credit card company hopes to target the young professionals, they would partner with establishments where these people usually shop or eat at. Partner establishments can range from a measly ten to as many as 50 stores.
Zero interest promos
To lure people to spend, credit card companies often tie up with establishments and offer zero interest for a specific time frame. The client can purchase the item and be able to use it without paying for it immediately. The purchase will reflect in the monthly statement after the zero interest period has ended.
This is often done with items that are very expensive such as tech gadgets, electronic equipments and house furnishings to encourage buyers to purchase item that they do not really need or are not so very necessary to their house. Luxury items such as jewelry are also sometimes covered by this scheme.
Free items
Credit card companies often offer free items when a client decides to sign up with them. Free items vary, depending on the type of account that a client will avail of and also depending on how high the credit limit is as well as the monthly income.
Gold card clients for example will get a much more expensive free item when they sign up while those that have signed up on regular accounts will often get regular items.
Waived service charges
Credit card companies also reward their loyal customers, especially those who have reached a certain amount purchased in a year, by waiving some of the service charges that they incur. For instance, customers who have good credit history with the credit card company need not pay for the annual fee. The company automatically waives the fee so that the client will stay on with them.