Student credit cards come in a variety of forms. But, there are two primary forms in which a student credit card can be found. The first is an unsecured student credit card while the other is a prepaid debit card. Understanding the differences and the pros and cons of each will help you to better determine which is best for you.
The Unsecured Student Credit Card
An unsecured student credit card is like a traditional credit card. With this type of student credit card, the college student (or high school student, as the case may be) receives a line of credit. Typically, student credit cards keep low lines of credit of about $500 to $1,000. This is partly because those applying for student credit cards typically have very little credit history and do not qualify for higher credit limits. The lower limit is also in place in order to help prevent the college student from accruing an insurmountable debt.
Not all credit cards for college students have such a low credit limit. So, if you require a student credit card with a larger limit, you might want to shop around. Similarly, if you want the restriction of a small credit limit in order to keep yourself under control when it comes to spending, be sure to seek a student credit card with a low credit limit.
The Student Prepaid Debit Card
A student prepaid debit card is a card that looks like a credit card and is accepted everywhere a credit card is accepted, but has one major difference: a line of credit is not extended to the cardholder. In order to make purchases with a student prepaid debit card, money needs to be placed on the card first. This money can come from a variety of sources. The student can place the funds on the card him or herself. Or, the student's parents can choose to add money to the card. In fact, parents can generally set it up so a portion of their checks from work is added to the debit card each pay period.
Pros and Cons of Student Credit Cards
Student credit cards can go a long way in helping to establish a student's credit history. In addition, a student who does not have money to pay up front can certainly benefit from being able to take out small loans with the credit card in order to make purchases. Another perk is the fact that the student doesn't have to wait for money to be added to the card before using it. So long as there is credit available on the card, the student can spend as much as he or she wants.
On the other hand, a student credit card increases the chances of creating a poor credit history. If the student accumulates a debt he or she is unable to pay, or if the student is late making monthly payments, it can reflect poorly on the credit reports. In addition, many students are already starting their adult lives in debt as they pay off college loans. Adding more debt from a credit card can be overwhelming and seem impossible to overcome.
Pros and Cons of a Student Prepaid Debit Card
A student prepaid debit card makes it easier for a student's parents to keep track of college expenses and to monitor the student's spending. In addition, there is no risk of destroying a credit history that has yet to be created because the student cannot spend more than what is placed on the student prepaid credit card. Many of these cards also report to credit bureaus, which helps in building a positive credit history.
Unfortunately, prepaid credit cards generally have many more fees than credit cards for college students. In fact, there usually are no fees associated with credit cards. Debit cards, on the other hand, often have an application fee and an annual fee. There are also fees added every time more money is placed on the card. All of these fees can easily add up to hundreds of dollars each year. When it comes to choosing which is right for you, it is really necessary to evaluate your own needs and spending habits.
For more on the basics of student credit card offers, Robert Alan recommends that you visit CreditCardAssist.com
Article Source: http://EzineArticles.com/?expert=Robert_Alan
Thursday, 10 December 2009
Wednesday, 9 December 2009
Credit card - bad credit?
http://www.vanquis.co.uk
The above credit card website is great for rebuilding poor credit.
They will overlook most damaging credits and help you to rebuild your credit back up again.
It does not matter that you may have CCJS or poor credit from mistakes in the past - this card w ill give you another chance.
They do require you to be in full time employment with a regular income to qualify for the plan.
The above credit card website is great for rebuilding poor credit.
They will overlook most damaging credits and help you to rebuild your credit back up again.
It does not matter that you may have CCJS or poor credit from mistakes in the past - this card w ill give you another chance.
They do require you to be in full time employment with a regular income to qualify for the plan.
Monday, 7 December 2009
Sunday, 6 December 2009
I'm a student and i want a credit card, What should I know? - 7 Rules.
Many college students can't wait to apply for their first student credit cards. The problem is, if a student is too eager, the student credit cards they apply for can quickly go from being a wonderful financial tool to being a huge financial burden.
Here are seven tips every single student needs to know about managing student credit cards.
1. More is NOT Merrier
The person who said you can't have too much of a good thing definitely wasn't referring to student credit cards. The more student credit cards there are in a student's wallet, the more tempted they'll be to go on little spending binges.
A good rule of thumb to follow is to not have more than two student credit cards open at any given time.
2. They Aren't a License to Spend
When some students get their very first student credit cards, they like to think of it as a license to spend. This couldn't be further from the truth. That cute little designer purse can wait until you have a full-time income. Save your student credit cards for emergency purposes only.
3. It's Cash -- Spend Accordingly
When a student gets their very first student credit cards, it is too easy to forget that every time a purchase is made with the card, the student is going to need the cash to back that purchase up.
Sliding a plastic card for a $100 purchase usually doesn't cause as much pause for thought as handing over $100 in cash does.
Every time you use your student credit cards, make sure you understand it IS cash that you're spending.
4. You're Not a Big Shot
When you get a student credit card, it may be hard not to flash that card in front of your friends -- buying a few rounds of beer or a lunch or two. Avoid the temptation.
Flashing your student credit cards will not make you the big man (or woman) on campus. It will just put you into debt you don't need.
5. Pay On Time, Every Time
Every single credit card statement that you pay during your college years is going to affect you into adulthood.
What does this mean?
This means that you HAVE to pay your student credit cards on time each month or you're going to pay for it with bad credit in the future. That can result in not being able to rent an apartment or buy a home. It can even affect your job opportunities.
6. It's Not Nice to Share
Once your friends see that you have student credit cards, they may be tempted to ask you to borrow them or they might want you to let them use it to make a purchase.
Financial arguements can really put a strain on friendships.
Do yourself a favor -- unless you are willing to pay for your friends purchase and take all of the responsibility associated with it, don't let them borrow your student credit cards.
7. Don't Be Afraid To Ask For Help
Now that you're in college, you probably don't want to run to mom and dad for help unless you absolutely have to. Don't get too big for your britches when it comes to student credit cards.
It's a new experience and you're going to need the advice of those more experienced than you at times. Make sure you turn to your parents for advice when you have questions about your student credit cards.
Here are seven tips every single student needs to know about managing student credit cards.
1. More is NOT Merrier
The person who said you can't have too much of a good thing definitely wasn't referring to student credit cards. The more student credit cards there are in a student's wallet, the more tempted they'll be to go on little spending binges.
A good rule of thumb to follow is to not have more than two student credit cards open at any given time.
2. They Aren't a License to Spend
When some students get their very first student credit cards, they like to think of it as a license to spend. This couldn't be further from the truth. That cute little designer purse can wait until you have a full-time income. Save your student credit cards for emergency purposes only.
3. It's Cash -- Spend Accordingly
When a student gets their very first student credit cards, it is too easy to forget that every time a purchase is made with the card, the student is going to need the cash to back that purchase up.
Sliding a plastic card for a $100 purchase usually doesn't cause as much pause for thought as handing over $100 in cash does.
Every time you use your student credit cards, make sure you understand it IS cash that you're spending.
4. You're Not a Big Shot
When you get a student credit card, it may be hard not to flash that card in front of your friends -- buying a few rounds of beer or a lunch or two. Avoid the temptation.
Flashing your student credit cards will not make you the big man (or woman) on campus. It will just put you into debt you don't need.
5. Pay On Time, Every Time
Every single credit card statement that you pay during your college years is going to affect you into adulthood.
What does this mean?
This means that you HAVE to pay your student credit cards on time each month or you're going to pay for it with bad credit in the future. That can result in not being able to rent an apartment or buy a home. It can even affect your job opportunities.
6. It's Not Nice to Share
Once your friends see that you have student credit cards, they may be tempted to ask you to borrow them or they might want you to let them use it to make a purchase.
Financial arguements can really put a strain on friendships.
Do yourself a favor -- unless you are willing to pay for your friends purchase and take all of the responsibility associated with it, don't let them borrow your student credit cards.
7. Don't Be Afraid To Ask For Help
Now that you're in college, you probably don't want to run to mom and dad for help unless you absolutely have to. Don't get too big for your britches when it comes to student credit cards.
It's a new experience and you're going to need the advice of those more experienced than you at times. Make sure you turn to your parents for advice when you have questions about your student credit cards.
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