Student credit cards work exactly like regular credit cards, and because theyre designed for students, theyre easier to apply for with no credit history. However, the tradeoffs for getting credit with a risky credit history are extra fees and jacked up interest rates. Sometimes, credit cards designed for students also come with unnecessary extra fees that credit card companies hope students will accept because they are too inexperienced to know these fees are not normal. Heres how to tell which student credit cards are good, and which you should pass on.
* What is the interest rate? If the APR (Annual Percentage Rate, meaning the standard interest rate) is at or within a couple of points of the APR of a regular credit card, the offer is good. Avoid student credit cards with higher interest rates. Also stay away from credit cards with a default rate that is noticeably higher than a regular credit cards default rate. The default rate is what your interest rate will be set to if you make any of several mistakes, including paying a bill late. It can be ridiculously easy to make these mistakes, so choose a card with a default rate as low as possible.
* Does the card charge a yearly fee? It shouldnt. Annual fees are a relic of the days when credit cards were rare and only the wealthy had them. Nowadays, annual fees are obsolete, and good credit cards dont charge them. If the credit card offer you like best does have an annual fee, ask the issuer whether it will waive the fee for you. Most companies will. They assume that the only people who will let the fee stay on their contract are the inexperienced credit users, and the more savvy customers will ask them to waive the fee as part of the application process.
* There should be no monthly or weekly fee at all. Ever. These fees are a sign that the card was designed to gouge people whose credit rating is so poor that they cant get a card anywhere else. They should not appear on any legitimate student credit card agreement. If you see them, dont waste time asking the company to waive the fees. Toss the application.
*Make sure it wont cost you to pay your bill by phone. Most credit card issuers have a number you can call to pay your bill either routinely, or as a panic measure when theres no time to mail in a check before the deadline. A small fee for making an emergency payment is acceptable, but you shouldnt be charged anything to make a routine payment by phone.
* Check online to see what other consumers say about the company. Do they have a history of jacking up interest rates without warning? Is their customer service responsive? If you find significant problems, avoid the company.
Student credit cards are an excellent way to build your credit history, but be careful which cards you choose. The right cards will put you on the path to a healthy financial future. The wrong cards will saddle you with hundreds of dollars in fees and thousands of dollars in extra interest payments. Do a little research before you choose student credit cards, and youll know which card offers to choose. Related Articles Low interest credit cards - Credit card applications - Credit card applications - Secured credit cards - Bad credit credit cards -

About the Author

More information on credit cards for bad credit, visit creditcardapplication.bloggyman.net.