Student Credit Cards Info - Student Credit Cards

Credit is a contract in which the card holder promise to pay in the future for goods, services, or money received today. Forms of credit backed by collateral (money or property you put up as a guarantee you will repay) are secured. If you do not repay as agreed, the lender will be able to repossess the collateral.

Credit Card allows us to make purchases or take cash advances and pay back a portion of the balance we owe each month with interest. The minimum payment due is usually a percentage of the outstanding balance, typically 2 – 3%.Most credit cards charge other fees (i.e. cash advance fee, late payment fee, annual fee) in addition to interest.

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Credit cards help college students build their credit history and fortify their financial future responsibly!

Are You Ready For a Credit Card?

You may already have a credit card, but if you don't, you can be sure there will be many opportunities to get one once you arrive on campus. Many credit companies set up tables in the common areas of college campuses to encourage students to sign up for credit cards. Often, they give away trinkets such as T-shirts, water bottles, frisbees, coffee mugs, etc. in exchange for having you fill out an application. Sound easy? It is, but think twice before you do it.

Unfortunately, many of the credit cards offered on campus may not be a good value for students. According to a study conducted by the U.S. Public Interest Research Group (PIRG), students who obtain credit cards at campus tables have higher unpaid balances than those who do not. Carrying high, unpaid balances is one of the quickest ways to incur too much debt and fall behind in payments.

Why do Credit Card Companies Target Students?

Surprisingly, students are a good credit risk, despite the fact that they often do not have jobs and are also borrowing student loans. Research has shown that student borrowers are valuable customers because they tend to stay loyal to their first card, continuing to make purchases for many years to come.

As a student, he has to decide for himself if he can handle the responsibility of a credit card. They are easy to get but not so easy to manage, especially if the student end up with a high, unpaid balance on which interest is accruing, but payments are not being made. According to the PIRG study, of the 79 percent of surveyed students who use credit cards for multiple purposes, only 13 percent reported limiting credit card use to emergencies.

Using Student Credit Cards in a Responsible way: How to build GOOD credit, as BAD credit can cause you much heartache. For example Credit card delinquency could prevent the student from qualifying for other types of loans, such as a home loan, auto loan or payday loan. When you miss a payment on your credit cards, you may receive a call or other correspondence reminding him of his overdue balance. He must be sure to pay at least the minimum payment seven days before the actual due date printed on his monthly statement.

Tips to Protect Student Credit Record
Pay bills promptly to avoid late fees.
Keep track of the charges.
Do not exceed the Credit Limit.
Always avoid Over-limit Fees.
Report any change of address prior to moving, this way the student will receive his/her bills right away.
Rights of Student Credit Card
The Fair Credit Billing Act for consumers applies to credit cards and can be used for:
Billing errors on the account.
Unauthorized use of student credit card account.
Goods or services charged, but not received.
Charges for which the student request an explanation or written proof of purchase.

If the credit card is lost or stolen, he/her will not be held liable for any changes made by unauthorized persons.

Student Credit Cards : Billing and Charge Disputes

If you see an unauthorized charge on your statement, write to the creditor or card issuer within 60 days after the first bill containing the disputed charge is mailed to you.

Send your letter to the address provided on the bill. Do not send the letter with your payment.

Be specific in your letter. In your letter, give your name and account number, the date and amount of the charge disputed, and a complete explanation of why you are disputing the charge.

Keep a record of receipt to document that your letter was received. You might wish to send it by certified mail with a return receipt requested.

If you follow these requirements of receipt, the creditor or card issuer must acknowledge your letter in writing within 30 days of receipt and conduct an investigation within 90 days. While the bill is being disputed and investigated, you do not need to pay the amount in dispute. The creditor or student credit card issuer may not take action to collect the disputed amount, including reporting the amount as delinquent, and may not close or restrict your credit card account. If there was an error or you do not owe the amount, the creditor or card issuer must credit your account and remove any Finance Charges or late fees relating to the amount not owed. For any amount still owed, you have the right to an explanation and copies of documents proving you owe the money. If the bill is correct, you must be told in writing what you owe and why you owe it. You will owe the amount disputed, plus any Finance Charges.

Annual Fee

Some issuers charge annual membership or participation fees. They often range from $25 to $50, and sometimes reach as much as $100. "Gold" or "Platinum" cards sometimes reach as much as several hundred dollars. These fees may be charged whether or not you use the credit card. Transaction Fees and Other Charges

may include other costs. Some issuers charge fees if you use the card to get a Cash Advance, make a late payment, or exceed your Credit Limit. Often an issuer will charge a fee to transfer a balance from another creditor's account to their account. Fees are disclosed to you in your Terms and Conditions as well as in your Account Agreement. It is important that you read these documents in order to understand your responsibilities as an accountholder.

Balance Computation Method for the Finance Charge

If you don't have a Grace Period or if you expect to pay for purchases over time, it's important to know what balance computation method the issuer uses to calculate your Finance Charge. This can make a big difference in how much of a Finance Charge you'll pay Š even if the APR and your buying patterns remain relatively constant.

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. Do you expect to pay your bills in full each month, or do you plan to pay off your purchases over time? Consider the Annual Fee, Finance Charges, balance computation method, and whether or not there is a Grace Period for purchases.

NOTE: Some student credit cards do not permit a grace period for the amounts due if you use the Cash Advance or Balance Transfer features, even if they have a Grace Period for purchases. It's also a good idea to look at the Credit Limit and how widely the card is accepted, as well as the plan's additional services and features. Consider and compare all terms, including the following, before you select a student credit card: When Your Debt Is out of Control

If you ever find yourself in a situation where you can't make a monthly payment, notify your student credit card issuer and work out a modified payment plan that reduces your payments to a more manageable level. Be cautious about turning to a debt counseling company to solve your debt problems. Avoid paying such a firm in advance until you find out what the company can really do. Before you sign a contract, check out the organization with the U.S. Better Business Bureau or with your local consumer protection agency.

Counseling services provide assistance to individuals having difficulty budgeting their money and/or meeting necessary monthly expenses. Many organizations, including credit unions, cooperative extension services, family service centers, and religious organizations, offer free or low-cost credit counseling.