How to Choose the Right College Credit
Card for You
By Richard Keir
Credit cards are a huge industry. Everybody
who can get one or two or 10, uses them because
they are a great convenience. But there are
so many credit cards being offered to students
these days that it might seem nearly impossible
to choose the right college credit card for
you. But it is very important to investigate
and to choose carefully to make sure you end
up with the best deal you can find.
It's also important not to go overboard and
get a half dozen cards or more. It is very
easy to get yourself into serious financial
trouble before you realize it. It is so easy
to use the cards when you want something -
but then the bills start coming and getting
bigger and bigger.
.
The interest rate that a college credit
card charges is a critical factor in your
considerations. Let's face it, when you
make a purchase on a college credit card
you are actually borrowing money from
the credit card issuer. They will want
it back - with interest. So you must pay
a monthly interest rate on this loan unless
you pay your balance off in full every
month.
Naturally, the best option is to pay
off the credit card every month, but sometimes
that just isn't going to happen, so you
want to get a college credit card with
the lowest annual percentage rate and
the longest 0% interest introductory period.
The majority of college credit cards will
be very similar in these two regards so
the next point to consider is what kind
of rewards you receive for using the credit
card.
For many students, college credit cards
are the first 'real' credit cards that
they have gotten and they may not know
what types of reward would be the best
to look for. Generally, the three main
reward types that will be most valuable
for students are:
* Cash Back
* Frequent flyer miles
* Free gas
Cash back on a college credit card is
actually a kind of points system. As you
spend money these points accumulate on
your college credit card account. Then
they can be exchanged for cash, gift certificates
or special discounts at popular outlets
and stores. While the amount of 'cash
back' that you get as a college credit
card reward might seem small, remember
that every little bit helps and you will
soon be racking it up.
If you have cash available to pay for
items like books and other necessities,
you can use your card instead and then
pay off the bill as soon as it comes.
This does two important things for you.
First, it helps build your credit history
in a very positive way. Second, it accelerates
your rewards. BUT, you must pay it off,
don't spend that cash on something else
and end up paying interest. You have to
keep your finances under strict control.
Frequent flyer miles could be the best
rewards to have with a college credit
card if you attend a college a long distance
from your home. As you use your college
credit card you accumulate frequent flyer
miles that you can later exchange for
flights back home - or wherever you want
to go. Unlike the airline reward schemes,
normally credit card frequent flyer miles
can be used on any participating airline,
worldwide.
Free gas when you use your college credit
card could be your best option if you
have your own car. Gas prices keep getting
higher and some college credit cards offer
rewards that can help with the rising
costs of operating a car by providing
rebates for gas station purchases. These
free gas college credit cards may also
offer discounts and points towards other
motoring related items so it can be well
worth your time to compare the different
programs available.
With careful research, a little good
sense, and careful attention to your finances,
your college credit card can definitely
help make your college years easier and
give you a great head start on an excellent
credit rating.
Copyright 2006 Richard Keir
About The Author
Richard Keir
As a writer and educator, both online
and offline, Richard strongly supports
the value of quality education, whether
online or off. Learn more about college
programs, online education and college
finances at The interest rate that a college
credit card charges is a critical factor
in your considerations. Let's face it,
when you make a purchase on a college
credit card you are actually borrowing
money from the credit card issuer. They
will want it back - with interest. So
you must pay a monthly interest rate on
this loan unless you pay your balance
off in full every month.
Naturally, the best option is to pay
off the credit card every month, but sometimes
that just isn't going to happen, so you
want to get a college credit card with
the lowest annual percentage rate and
the longest 0% interest introductory period.
The majority of college credit cards will
be very similar in these two regards so
the next point to consider is what kind
of rewards you receive for using the credit
card.
For many students, college credit cards
are the first 'real' credit cards that
they have gotten and they may not know
what types of reward would be the best
to look for. Generally, the three main
reward types that will be most valuable
for students are:
* Cash Back
* Frequent flyer miles
* Free gas
Cash back on a college credit card is
actually a kind of points system. As you
spend money these points accumulate on
your college credit card account. Then
they can be exchanged for cash, gift certificates
or special discounts at popular outlets
and stores. While the amount of 'cash
back' that you get as a college credit
card reward might seem small, remember
that every little bit helps and you will
soon be racking it up.
If you have cash available to pay for
items like books and other necessities,
you can use your card instead and then
pay off the bill as soon as it comes.
This does two important things for you.
First, it helps build your credit history
in a very positive way. Second, it accelerates
your rewards. BUT, you must pay it off,
don't spend that cash on something else
and end up paying interest. You have to
keep your finances under strict control.
Frequent flyer miles could be the best
rewards to have with a college credit
card if you attend a college a long distance
from your home. As you use your college
credit card you accumulate frequent flyer
miles that you can later exchange for
flights back home - or wherever you want
to go. Unlike the airline reward schemes,
normally credit card frequent flyer miles
can be used on any participating airline,
worldwide.
Free gas when you use your college credit
card could be your best option if you
have your own car. Gas prices keep getting
higher and some college credit cards offer
rewards that can help with the rising
costs of operating a car by providing
rebates for gas station purchases. These
free gas college credit cards may also
offer discounts and points towards other
motoring related items so it can be well
worth your time to compare the different
programs available.
With careful research, a little good
sense, and careful attention to your finances,
your college credit card can definitely
help make your college years easier and
give you a great head start on an excellent
credit rating.
Copyright 2006 Richard Keir
About The Author
Richard Keir
As a writer and educator, both online
and offline, Richard strongly supports
the value of quality education, whether
online or off. Learn more about college
programs, online education and college
finances at http://online-learning.blgz.info/.
