August 05, 2007
Students and Credit Cards
A new school year is just around the corner and for college students, especially those just entering college, it means huge life changes are upon you.
For many students college means living on campus and it will be your first time in the real world. You will have real bills and expenses that you haven’t had before.
When you are at college you will be learning more than just the courses you are studying, you will be having your first crack at real life training. Real life education means managing your money and budgeting. Yeah, it’s a bit boring but if you start off on the right foot as soon as you leave home to attend college you will set a foundation that will follow you for years to come.
You might be thinking about getting a credit card to make online purchases and text books. It is a good idea to get a credit card as a college student to earn some rewards points. However you must use extreme caution especially if this is your first time applying for a credit card.
Credit cards can make or break you. If you use your credit card responsibly then upon graduation you will have established a great credit rating which will enable you to purchase a house or a car.
If you neglect to use caution with your credit card then after graduation and throughout your college days you will have nothing but problems.
Set your foundation of responsible use of credit now no matter how tempting it is to go on a shopping spree or binge at the bar. Remember that credit cards are not free money.
What you spend on a credit card is due next month, remember that!
If you think you possess the characteristics of somebody that will use credit with respect then have a look at the Discover Open Road credit card for students. Discover offers some excellent rewards for a student credit card such as no interest on purchases for up to 6 months and 5% cash back on gas purchases and lots of other great rewards.
Just make sure you pay your bills on time in order to benefit from the rewards of the Discover student credit card.
September 12, 2006
Desire for independence creates massive debt
I was just watching some of my favorite online newswire services and stumbled across a very interesting, yet very important message about students over-zealous desire for credit.
The story can be viewed at http://www.da.wvu.edu/XMLParser/printstory.phtml?id=23635
It pleases me to see Darin Kordyak's attitude towards student credit. Darin writes from the point of view of a responsible student who has recognized that obtaining a credit card at a young age will lead a student down the road to excess financial burdens at far too early an age.
Darin discusses where student credit cards are usually found - Behind a bar to pay an increasing drink tab. I do admire his take on students swarming to the booths that are set-up at every college early on in the school year.
I personally can speak from experience and tell you that what Darin writes is very true. Students will, in most cases, abuse their credit cards. Using the usual excuses of "I need credit for emergencies" - NO YOU DON'T, call your parents, call a friend or a relative or consider contacting the bank for a personal loan (at a much lower interest rate).
Better yet, get a prepaid Visa or MasterCard and use that for emergencies. Hmmm, wouldn't that be a good idea. If you were truly concerned about having cash for emergencies a prepaid emergency fund would serve to be of great value.
Now head off and read Darin's post, what he says is some incredibly sound advice that everybody should read, not just students!
Posted by Colin at 11:04 PM | Permalink | Comments (0) | TrackBacks (0)April 14, 2006
Discover Student Clear - Editor's Review
This card is the perfect choice for students to establish their credit early, while enjoying the conveniences of a credit card. It will be easy to build your credit history with the unbeatable 0% introductory rate that comes with this card for six months. Also, you will enjoy the convenience of the online accessibility to your account they offer that allows you to pay your bills, view your last twelve statements and most recent transactions to keep you up-to-date and informed on your individual account. You can even choose to sign-up for an email reminder that will let you know of minimum payment that is due.
With your student clear card you also have the benefit of receiving up to 2% Cashback Bonus and get up to 1% cash bonus on all your purchases, with unlimited earnings. If you spend up to $1500, you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate. You then have the options of doubling your reward with gift cards or certificates from Discover Card Partners such as Blockbuster, Carnival Cruise Lines, The Sharper Image and much more.
Like any credit card however, you must be careful when taking out a cash advance. Make sure you think it over carefully because it comes with a high interest rate of 20.99% that starts as soon as you receive your cash. Be sure to pay your bill on time because if you are late, your introductory or special rate will be terminated and the purchase APR will apply to any purchases or balance transfers you have made. You don't want to be stuck with another payment you really can't afford. I do however think this card is a good choice with the overall benefits and service it has to offer such as - Cashback bonus, no annual fee, online service and the free Discover 2Go card that can be conveniently attached to any key chain.
April 13, 2006
Discover Student Classic Credit Card Review
The Discover Student Classic is a great card to help students build a credit history on. With this card they will receive an unbeatable rate of 0% on purchases for 6 months, but after the introductory period ends the rate will be increased to 15.49%. At this time, it is very important to make sure all outstanding balances are paid in full each month to avoid costly finance charges and take note that cash advances are at a high interest rate of 22.99%.
There are more great benefits that go with this card that include no annual fee, up to 2% Cashback Bonus and a free Discover 2GO card that can conveniently be attached to your key chain. You will receive your cash bonus on all your purchases made with unlimited earnings and you will have the option to even double your rewards with gift cards or certificates from such partners as Blockbuster, Carnival Cruise Lines, FTD.com and The Sharper Image. If you spend up to $1500, you will receive a .25% rebate and $3000 spent will give you a .5% rebate - spend over $3000 and you will receive a 1% rebate.
By reviewing the above mentioned benefits, I think this card is a good choice for those with an average or limited credit history who are looking for a cash reward credit card. Students who plan to carry a large balance should however consider a lower interest rate card that applies the Average Daily Balance method only once and not the more costly two-cycle method that this card offers.
Posted by Colin at 12:51 PM | Permalink | Comments (0) | TrackBacks (0)