Student Population and Credit Cards
Many of us have gone through the educational process and found out first hand exactly how hard it is to pay for absolutely everything without having to sell an organ or stop eating for a period of time. Its difficult, especially since not everyone can get everything covered purely by AID, or you may have been late in the student aid application process, or even just decided you didn’t want to get in debt as far as others you know may have. Whichever choice you may have made, you will definitely have been left looking for other supplemental income options.
Enter, the standard, prevalent credit card that almost every American has these days. Being the highest per-capita population to card possession country in the world, you can just see the effects of credit card debt on all levels of the population strata. Students are no different, being one of the key populations credit companies seek out to give high interest rates and lower credit lines to. Its all part of the profiling, or redlining the companies have been known to do. They gather information on populations in financial need, who by default are most likely to sign up for a higher interest based credit repayment program. They see it as an immediate solution to their problem of not being able to completely pay for their education, and are thrilled to have a solution. But, what they don’t realize is that everyone comes up short when they’re in dire need such as that. They then have become part of the preyed upon desperate population.
Debt is accruing at such an alarming rate, many are wondering how it could get to such a point. Many find out that most student populations, especially those that are just out of High School and entering for the first time lack the knowledge to properly decide things on such a financial level, or to be able to capitalize on reward cards, or to spend small and pay off completely. They just see the immediate before them. So, while some legislation may help the rising debt problem, the greatest help would be self education, and intelligence. Read, educate yourselves; You are in college after all, yes?
What To Consider When Choosing A Credit Card
Credit cards have become a central part of our lives, and more so since the credit crunch hit. Credit cards are vital in allowing us to purchase items and pay it off later, they can help improve your credit, which is important when you look at things like mortgages, and they can help you get through tough financial periods.
But there are some very bad credit card deals out there, and as credit cards play such an important role in peoples lives it is important that people consider carefully what sort of deal is the right one for them, so they can compare and contrast credit card offers.
Before you even consider shopping around for a new credit card however you must first take a look at how you will be using the cards. Will you be using it only in emergencies – in which case monthly fees are not going to be appealing, but you could live with a higher APR. Or will you be using it a lot – in which case a low APR and a high grace period is in order.
But however you use your credit card make sure that you are considering these factors when you are comparing offers.
Fees.
Credit cards incur fees, and you need to look at what they are and how much they are for. Is there a signing on fee, or a monthly fee? How much do they charge you if you miss a payment? Fees are an important factor when deciding which credit card to get because many people forget about them, so some unscrupulous credit companies like to charge high fees here, safe in the knowledge few people will check before the sign up for the card.
APR – Annual Percentage Rate.
This is how much interest you will be charged on your balance every year. The lower the better as you will be paying out less each month.
Grace Period.
There is a grace period, usually expressed in days, in which no interest is charged on a new purchase. The longer the grace period the longer you will have to pay off the balance before it starts costing you extra money in interest.
Credit limit.
Every credit card has a credit limit, usually determined by your income and credit rating (taken from credit reference companies). Look at what you are offered and decide if it suits in with your purposes of getting the credit card in the first place.
Rewards.
Many credit cards offer rewards for being with them. Air miles, points redeemable at certain stores etc. But despite the adverts the model of how to qualify and claim these rewards is actually quite complex and varies from company to company. If the rewards are whats interesting to you make sure you look at the fine print, such as how much you need to spend per month to qualify for the rewards.
As you can see choosing a new credit card isn’t as straight forward as many think. It is an important decision and one that needs to be done right, by considering what you will be using the card for and all the information available to you. But by choosing the right card you will get yourself a good deal and one that will suit your life style. Consider the above points when making your decisions and you can’t go too far wrong.