The quality of your credit rating has a huge effect on a lot of things in your life. It will be easier to get loans when you need them; and you will receive a lower interest rate on them as well. A good credit rating can even mean having an easier time being hired for a job.
Just thirty years ago, credit card companies were handing out credit cards like candy. You’d receive credit card offers with low interest rates and a sky’s-the-limit line of credit. At the time, credit cards for college students was a primary target group. Such offers were mass mailed and all you needed to do was sign on the dotted line. Almost everyone jumped on the bandwagon, buying those desired items they couldn’t pay cash for, but could make a monthly payment. How convenient!
If your folks didn’t happen to be geniuses about money and particularly if you’re still young, you might have problems taking care of your finances. If you spot that jacket that you just simply have to have, then you produce that card and forget all about that statement which will be coming in a matter of weeks.
Unless you were raised by an accountant or tax man, if you’re young, you may not have a good handle on your finances. If you see a great pair of shoes or a video game that’s on sale, it’s likely that plastic comes out of your wallet and you walk away with the goods. However, the bill does come at the end of the month.
It’s unbelievable, but nonetheless true, that offers for credit cards for college students are as abundant as they were thirty years ago, but such offers no longer have what you’d call an attractive APR. Fees are substantial for late payments. A single late payment most often results in an even higher APR.
Some credit card companies may not require much information from you before issuing that card. It’s up to you to read all of the fine print before you accept the card. Such agreements are printed in a very small font and are several pages long. These little brochures are designed to be of little visual interest, stuffed in the envelope along with glossy four-color offers for other services. They’re hoping you won’t read the agreement!
Be smart when you shop these credit cards for college students. Read the cardholder agreement carefully. Don’t regard that card as a windfall of cash. It isn’t. Be prepared to pay it off each month. If you must max it out for emergencies, make at least three times the minimum payment, to avoid having your balance increase instead of decrease. If you’re smart, a credit card can be a good thing!