If you are a college student then you too have your own personal monetary needs and expenses. It can get a little embarrassing to keep asking for pocket money from your parents, so it is much better that you avail a student credit card and become independent in terms of your money management and make your parents proud of yourself.

As a student you have your own expenses and fiscal needs that cannot be met with the usual credit cards that are available in the market. You need to have such a card that cater specifically to your monetary needs and thus benefit you the most. For this purpose, student credit cards have hit the market that has been made keeping in mind the various unique financial requirements of the student.

How can you avail your first student credit card?

Procuring your first student credit card is fairly easy. You can get in touch with any of the good student credit card companies and fulfill the basic requirements of the procedure. The companies will ask for some fundamental documentation like your address proof, where do you study and your authenticity. The procedure is more or less similar to that when you apply for a passport or visa.

You simply have to prove your authenticity. You can also make use of the online student credit card companies to avail this facility. But make sure you go for the one that offers you lowest fees, discounts, and other interesting features like student benefits, reward programs and low interest.

How Do You Benefit From Your First Student Credit Card?

The student credit cards are of much use as they help you to meet your expenses and monetary requirements on your own, independently. Once you avail your first student credit card, it will work successfully towards building a good credit record for you provided you use it discreetly. If later in life you ever need any kind of a loan, this good credit history that you build with your student credit cad will definitely aid you in availing those money loans very easily. So, just keep in mind that you keep your dues always clear and top notch.

Credit card companies and banks here and there are advertising offers of zero percent or interest free credit cards. The offer of an interest free credit card makes us want to take a step back and see if everything about it is as good as it really says. To this day, we are still surprised by this kind of offer. Why? It’s because it comes as something that’s too good to be true.

This kind of cards, the interest free credit card, has been unheard off until the 80’s. It was only in the 1980’s when interest free credit cards came popping up. It makes us wonder, how good are they, really? What is the truth behind the interest free credit card?

Some claim that the interest free credit card is nonexistent. That the interest free credit card only offers its’ zero percent feature for only a limited time, say from the time we applied for one until a year or two. This is referred to as the “teaser” period or the time when the card holds or extends its’ incentives to the user. Such things used as teasers include the zero percent interest charge on the bills.

In this modern day where interest free credit cards are out and about for avid shoppers and such, it is important for us to know whether they are what they say. How do we know that the zero interest charge on balances made on these cards would hold out for some time and not just for merely one or two years? We snoop around at the information given us by the credit card companies that offer this kind of cards, of course!

When it comes to the interest free credit card, it is important to monitor the length of time that the zero interest applies before we decide to move the money in it. The case with zero percent interest credit cards is that once the teaser period is up, there is a big possibility of the company to charge an interest on the bills that could be higher than the usual ones that other credit cards offer. When the teaser period comes to an end, it would be better for you not to hold on a balance on the card when the high interest rate comes into fruition.

The next thing we do is to check for hidden fees. We have to ensure that there are no fees charged when we sign up for it. We also have to make sure that there are no monthly fees to pay for. We also need to check if we wouldn’t be penalized for the balance transfers we make to other cards when the teaser zero percent interest rate expires.

It is also important for us to check the monthly payments for whether it is something we can easily manage. When it comes to interest free cards, we also need to look at our financial status because balance transfers has a big possibility to get charged with high interests once the zero percent teaser period expires. Knowledge of the minimum monthly payments we make with this card also comes to use when we compare it to the minimum monthly payments we make with the other credit cards in our possession.

The most important thing to remember when availing of the interest free credit card is to evaluate ourselves. We should as ourselves questions like whether we are the types who are responsible enough to remember that when the expiry date of the zero interest comes, we would be able to transfer the remaining balance into the other cards we have and such.

So the question comes, is the interest free credit card really as good as the credit companies and banks tell us they are? That we don’t know for sure. But what we do know is that if we take note of all these upon signing up for an offer for such, perhaps we can use the zero interest teaser period to manage and rid ourselves of our credit debts!

There are lots of people who have problems paying-off their debts from their credit card. Credit card debts can be pretty scary for some people especially when the interest and the charges pile up, amounting to a sum that would seem almost impossible to pay. There are available solutions to this problem so there is no need to worry. The most basic of the solutions is to make sure that the balance on your credit card debt is paid religiously on a monthly basis. With this scheme, you can be assured that your debt on your credit card will not build –up. However, paying the balance on the debt every month is difficult for some people because of the rising prices of commodities and the problems in the economy nowadays. Still, there are solutions when you are already in a tight situation that it becomes burdensome to pay the debt. You can opt for instance, for a Credit card consolidation.You can also go for a balance transfer wherein you could transfer the balance of your credit card with a high interest to a credit card which has a lesser interest rate.

If you do not have any credit card, and are planning to have one, you should be wary of credit card companies that offer an “Annual Percentage Rate”. This Annual Percentage Rate of credit card consolidation means that the interest on the credit will be low for an initial period, but will then increase after the specified time. When you decide to go for this kind of arrangement, just try to make sure that the balance will be fully paid before the initial period ends, when the interest is still low. If you tried to do so but failed, just make sure that you have made the minimum required payment at the post-introductory rate.

Credit card consolidation loan is another option for people. This set-up will allow you to merge your debts, with high interests that are still outstanding, with that with a lower regular payment, and with a significantly lower rate of interest. The savings that you have from this scheme will allow you to pay the entire debt in a lesser period of time, making Credit card consolidation loans attractive for many individuals suffering from onerous debt.

Balance transfers and credit card consolidation loans are just some of the ways that you can address your problems on credit card debt. Although there are available credit solutions, it is still better to take pre-emptive measures when it comes to ballooning debt. This is through wise-spending. Stick to your budget as much as possible. If you are out on a shopping or buying groceries, try to make your purchases on a cash basis. When you are in a mall or in a department store, and you happen to really like an item, use the “twenty-four hour rule” in shopping, which means that you do not immediately buy the item, but rather give yourself another day to think about whether to buy the product or not. This should be done especially if the price of the item is quite material.

The Cash back credit card proves to be a dream for people who are particular with their finances. With the card’s offer of percentage rebate one each penny spent using credit card, it is no wonder why many are raving about this fiscal showcase that provides client with much satisfaction.

A Cash back credit card allows you to have at least five percent discount on your purchases. You can even earn what you have spent through your credit card rewards. Credit card companies offer a variety of interest rates on cash back credit cards. It can be used in making purchases at department stores, drug stores, supermarkets and gas stations. Other than cash rebates, some cash back cards offer outlay on repair and warranty services, such as auto repair, apparel mending, store improvements and home refurbishing.

Most cash back benefits are often pegged at five percent. This means card holders get a five percent discount on any purchase. Using the cash back benefits in making most of your purchases and regular expenditures can generate considerable savings over time. Credit card companies also offer services to maximize cash back earnings. Clients can apply for additional cash back cards for other family members. This expands the opportunity to save, not only in the basic household expenses, but also in other personal costs.

Earning the cash back differ among credit card companies. Some offer the full cash back on purchases only after a certain charge amount is reached. Others offer cash back benefits on the maximum earnings that a client can accumulate after a year. This way, clients are not tied up with the intricate process of getting their cash back reward.

Upon applying for a cash back credit card, clients must be careful in knowing the stipulations of the credit card company. Some companies have cash backs that may expire after a few months of account dormancy.

The redemption processes of cash back rewards also vary among different credit card companies. It is therefore important to take not of these details upon application of cash back cards. Special cases must be kept posted as often as possible.

Maximizing the benefits of your cash back card is possible if you opt to pay the full card balance each month. This way, interest charges will not hinder you from enjoying the discounts available in making purchases. Some card companies offer low interest rates and transfer services that are available on line. Cash back credit card offer many other tempting benefits such as an introductory zero-interest APR upon the application period. Other companies have tie ups with merchandisers and other service providers and give other useful promos such as additional frequent flyer mileage when the cash back card is used in purchasing airline tickets. For business credit cards, extra benefits are offered such as unlimited cash back earnings, charge pay scheme flexibility, and free annual membership fees. Companies take the extra mile by showcasing personalized credit cards with the client’s picture and company seal or name displayed on the card.

Credit card fraud is an increasingly serious problem facing the credit card consumers. In the United States alone, losses are estimated to be one billion dollars due to credit card fraud. With growing number of people preferring to shop online or by phone, credit card fraud is a bigger concern than we realize. As a cardholder, you should put in extra efforts to protect your card and card number to prevent credit card fraud. Some tips for credit card prevention include:

1. Maintain a separate record of your credit card and account numbers. Write down all your credit card numbers, their expiration date, the phone number and the address of the credit card issuers and keep them in a safe place.

2. Always keep your credit card in your sight every time you use it. Be very careful about getting your credit card back from sales clerks and make it a habit to put the credit card back in the same assigned place in your wallet as soon as possible. Only carry the credit cards on a daily basis that you absolutely need.

3. Hold on to your credit card receipts and check your credit card statements against them. Destroy any voided or carbon copies of your credit card receipts.

4. Note down your PIN number at a place different than your credit card. Ideally, you should try to memorize the PIN number and avoid writing it down at all.

5. Be careful about giving out your credit card number, especially over the phone. Unless you have initiated the call or you have done business with company before or if its a reputable company, do not give out your credit card number.

6. Shred any document, paper that has your credit card number written on it.

7. Ignore any emails that require you to provide your credit card number via email or that mention that your credit card number is needed to verify your account. No business would ask you do such a thing via e-mail or an online form.

8. Avoid lending your credit card to anyone.

9. Notify your credit card issuer in advance in case of any address changes. This will prevent your credit card related mail being intercepted while you are moving.

10. For online purchases, always verify that the online retailer uses secure transaction methods for credit card payments. If you are uncomfortable to make the payment online, some websites offer alternative payment methods and they work equally well.

If you are a victim of credit card fraud or your credit cards are stolen, contact the credit card issuer(s) at the earliest. The issuers will work with you to deal with these kinds of emergencies. Write to the credit bureaus and the mailing list houses to get your name off of their pre-approved offer lists. The address and procedures can be found here. So taking a few sensible precautions will go a long way towards preventing credit card fraud.

This part covers credit cards by Credit Quality (also known as Credit Score). If you want to read about credit cards by Card Type, then please see Part I of this post.

Credit Score is usually a numerical representation of an individuals credit risk based on historical information. Some of the elements that go into calculating a credit score are:

Payment History: e.g. paying bills on time, paying loans on time
Amounts Owed: Sum of open loan amounts, sum of credit limits on credit cards etc.
Length of Credit History: The longer the credit history the better. Of course, the history should be good.

Other factors also come into play but the above three usually have the highest weight in determining your credit score.

You can find more information about credit scores at Wikipedia, myFICO, Experian, Free Credit Report and a number of other websites.

Your credit score plays a very important role when getting approved for a credit card. It determines:

Credit Limit: The amount of credit you can get on your credit card
Regular APR: Your interest rate for outstanding balances, after any promotion periods expire
Promotion Period: Most credit cards offer promotions to new customers. For e.g. a promotion could be 0% APR for upto 12 months. If you have a low credit score, the 0% APR promotion will only be offered for 3 - 6 months.

You can find credit cards on nuuvoo.com, by Credit Quality. On the left hand navigation, the second menu box has links to credit cards by the following Credit Quality Types:

Excellent Credit: The credit cards shown in this category are meant for people with excellent credit i.e. the highest credit score. If you do not have Excellent Credit, do not apply for these cards as your application may be denied and could also affect your credit score.
Good Credit: The credit cards shown in this category are meant for people with Good Credit. These credit cards have good interest rates and you should also be able to avail their rewards programs.
Fair Credit: Fair Credit cards are meant for people with Fair Credit, typically a credit score in the range of 620 - 659. It is a good way to get approved for a credit card and start improving your credit score. Making your credit card payments on time will help you improve your credit score. Included in this Fair Credit category are credit cards for people who are “New to Credit” or where credit “Needs Improvement”. When reviewing credit cards, check the “Credit Needed” column for further information.
Bad Credit: These credit cards are meant for people with Bad Credit i.e. Credit Score less than 629. Credit Card issuers have started issuing credit cards for people with Bad Credit. You will typically pay higher interest rates, annual fees and may not get any rewards benefits. Prepaid cards are a great way to get started and start improving your credit score. Be sure to read all the terms and conditions before applying for a credit card.

Which ever credit card you decide to apply for, make sure you read the credit card offer details before applying. A denied application could affect your credit score. Also, making your payments on time will ensure that your credit score is not affected and can actually improve your credit score over time.

In the US there are 100s of credit cards offered by a number of banks and issuers. The credit cards features and benefits are numerous. Given all this how can one make the right decision in picking a credit card? Read below for some tips.

Low APR Credit Cards: These credit cards typically offer low (0% - 2.99%) APR for an introductory period, typically 6 months. These credit cards are meant for people who cannot pay their balances every month and want low interest to accrue on them. If you intend to apply for one of these credit cards, also check if the low apr applies to balance transfers as well. If so, you may be able to transfer high APR balances from other credit cards and consolidate. Keep in mind that at the end of the introductory period, regular apr will apply.

Balance Transfer Credit Cards: These credit cards allow you to transfer your balance from another credit card or loan and thus consolidate your payments. These typically come with a low apr introductory period so that you payment as well as interest accrual is low. After introductory period, regular apr will apply which is typically much higher.

Instant Approval Credit Cards: These credit cards allow you to apply online and know the status of your application within minutes. Typically you will need excellent credit. In some cases, the issuer will need additional time to make a decision on your credit card application.

Cash Back Credit Cards: These credit cards allow you to earn a cash back on your purchases. Cash Back typically varies between 1% - 5%. Amount of cash back depends on your purchases and purchase locations. Read details for the credit card for more information before you apply.

Student Credit Cards: These credit cards are typically meant for students who may not have credit history or have bad credit history. In addition, these are meant for those who may not have regular income as they are students.

Business Credit Cards: These credit cards are meant for businesses, typically small businesses. You usually get more leeway on your payments i.e. 60 days instead of 30 days etc. You also typically get higher credit limit as businesses may need to make more purchases than a typical consumer.

Prepaid Debit Cards: These credit cards are usually meant for people who have no credit or have a bad credit and thus will not typically get approved for a credit card. You will have to pre-pay / deposit money with the credit card issuer who will then allow you to make purchased against this deposit. These debit cards are similar to having a debit card from you bank itself. Issuers may impose feeds like activation fee, transaction fee etc. So, read credit card details before you choose to apply for these cards.

Charge Cards: These cards have a restriction on payment. Typically payment is due in full when statement is received.

Rewards Credit Cards: Now a days, all credit cards come with some form of rewards. These rewards can be cash back, airline points, gas reward points, home-improvement rewards etc. With every purchase you make you can get rewards. Cash back and Airline Points are the most popular rewards options that people opt for. Although, with current gas prices, Gas Rewards Credit Card are getting popular as well.

More about this topic in next post: How to Select a Credit Card - Part II