College Student Credit Card Offers

When we are attending a university, we may literally receive dozens of college student credit card offers in the mail every week.  Each offer sounds like a better deal with than another.  Some of these offers will have a low introductory APR on purchases or balance transfers.  We see the bold print, highlighting that low interest rate, that enticing line of credit and perks such as rebates or frequent flier miles.  We might quickly fill out the college student credit card application without carefully analyzing the small print.

We may think we know how much the APR is on purchases; balance transfers or cash advances but do we really?  How much will that APR increase if you are delinquent with a payment or if you exceed your available credit limit?  What late fees are associated if your payment is received late?  How about fees for exceeding your credit limit?  Are there annual fees or setup fees?

When comparing college student credit card offers one must accurately determine how much a given card will really cost them in the long run.  Credit card companies offer a variety of rates, fees and incentives and this is why choosing a credit card is a very significant financial decision.  Review your options carefully and be sure that you are saving money on interest and fees.

Know whether or not your credit card has a fixed or variable rate.  You can do this by viewing the cardholder agreement or disclosure box on the application.  Remember that fixed rates aren’t always locked and can fluctuate for a variety of reasons on many of the credit card for college student plans.

Chances are if you have a solid credit score you will constantly receive solicitations for college student credit card deals offering zero percent interest for limited periods of time.  This is where you can truly take advantage of some good, low-rate offers that come your way.

Be warned however that the fine print will always tell the true story.  Sometimes this sweet deal that you are being offered only applies to new purchases and not a balance that you transfer or cash advances.  Cash advances will almost always have a higher interest rate than any other transaction but you will occasionally receive promotional checks that offer a low interest rate and are debited from your credit line when used.   Again we can’t emphasize enough that you must read the details.  There may be hidden fees if specific requirements aren’t met.

In many cases the college student credit card that offers a low interest rate for a period of time may skyrocket later in the term.  This is when you can play the credit card game.  You may be able to pay off your balance before that low introductory rate expires.  You can also look for another offer with a low introductory rate on balance transfers that will enable you to transfer that balance to a different card at a lower interest and close out the older card that is no longer benefiting you.

Know your credit score and monitor your credit report several times a year.  If you are a customer in good standing, never delinquent with your payments, paying above your minimum payment each month and have reasonably good credit there isn’t any reason why you can’t have an interest rate between 8 percent and 11 percent.  Many people are walking around with high interest rates cards sometimes 13 percent or higher when all it may take to get a better rate is just one phone call to the credit card for college student company to let them know that you are worthy of a better rate.

Be careful of extreme low rates such as 5 percent.  There are usually other costs involved like a high annual fee for instance.  The same applies to special perks offered by many cards like reward programs, incentives, rebates, frequent flier miles and cash back rewards for every purchase made using the card.   Please review details such as the rate at which loyalty points are accumulated, the value or points and the ease with which they may be redeemed.  It isn’t unusual for these value points to expire at a surprisingly alarming rate or be difficult to redeem.

Retailers have jumped on the credit card for college student bandwagon with introductory offers to attract new cardholders to their store branded cards.  Examine these college student credit card offers carefully.  You may receive in-store discounts on merchandise but most retail cards will have a very high interest rate that could take forever to pay off.

Another thing to consider when choosing a credit card provider is how they handle fraud protection.  We’ve all seen those identity theft commercials on television or we’ve heard a stolen identity horror story from someone we know.  Check the credit card provider’s policy regarding fraud as many providers now cover losses incurred through fraudulent transactions while others may not be as understanding.

Just be sure to be aware that each card for students has it’s own terms and conditions.  Having a college student credit card is a serious commitment for any student, and not knowing specifics can very easily have an adverse effect on your credit standing and your future financial success.  Do your homework before making that commitment.