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All About College Credit Cards
By plrprousers | November 23, 2008
Everyone knows that their credit rating can significantly impact their lives. A good credit rating results in better lending rates, when you need to apply for a loan and can even make a difference in your employability.
It wasn’t all that long ago that credit card companies were handing out cards left and right. You would see low interest credit card offers with very high credit limits. Credit cards for college students were easy to get – the card offers were sent out in bulk and it was so easy to apply and be approved. People took advantage of these offers and bought those things that they really couldn’t afford otherwise – but could afford to pay off over time.
If you weren’t raised by financial whizzes and especially if you’re a young person, you might not have any idea how to manage your money. If you see that “must have” item, you just pull out that plastic, forgetting that the bill will come due at the end of the month.
If you are in college and see a lot of these offers for credit cards for college students, you may want to talk to your parents before signing up for anything. They may have their own experiences to share with you; they may have taken on more debt than they could handle when they were in school themselves. Eventually, your mom or dad got themselves into a deep debt which took years to pay off; don’t follow your parent’s example in this case.
It’s unbelievable, but nonetheless true, that offers for credit cards for college students are as abundant as they were thirty years ago, but such offers no longer have what you’d call an attractive APR. Fees are substantial for late payments. A single late payment most often results in an even higher APR.
Some credit card companies may not require much information from you before issuing that card. It’s up to you to read all of the fine print before you accept the card. Such agreements are printed in a very small font and are several pages long. These little brochures are designed to be of little visual interest, stuffed in the envelope along with glossy four-color offers for other services. They’re hoping you won’t read the agreement!
Use caution when looking at credit cards for college students and read the cardholder agreement very carefully before you sign. Remember, this card isn’t some windfall; you need to be able to pay off the balance every month. If you do have an emergency and max your card out, then you should make at least three times the minimum monthly payment to pay this balance off as quickly as possible. If used wisely, a credit card can be a great thing for you.
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