Morgan Hamilton asked:




Most kids can’t wait to get that first credit card. While it can be an exciting moment in a young adult’s life, it is not something that should be rushed into without doing some homework first (after all you are students). Research the criteria and terms of the card, set some limits for yourself and, if applicable, admit that you’re not ready for the responsibility. The purpose of this article is to discus the questions you should ask yourself before filling out a student credit card application.

Am I Old Enough? This one may seem like common sense but every year credit card companies send pre-approved applications to seventeen years olds enrolled in college. If you are not 18 than it is not legal for you to have a credit card, even if the company sends you a application.

Are The Terms Reasonable? The main terms you want to look at are the annual percentage rate (APR), the late and overdraft fees, the grace period offered by the company, and whether or not there is an annual fee attached to the card. The APR on student credit cards usually aren’t very low so just shop around the lowest you can apply for. Late and overdraft fees (which you shouldn’t have to pay if you stay responsible) are usually pretty much the same. Avoid cards with no grace period since you’ll end up paying too much in interest and never get a card with an annual fee.

When Will I Use This Card? Idealistically you should only use your card for emergencies. Get a debit card or pay cash for everyday purchases and impulse buys (if you can afford it). If you state that you will only use the card for emergences, go one step further and define what an emergency is. If you consider a pizza craving on Friday night an emergency, stay away from credit cards for a while. Remember to do this before filling out the student credit card application, not after you have the card in hand when the temptation may be too great to resist.

Can I Really Handle This? In other words, have you been responsible in the past? Have you usually been good with money, saving until you really needed or wanted something? Or does money seem to burn a hole in your pocket until you just have to spend it on something, anything at all?

Samuel

abcdefghijk asked:


I keep seeing people on campus offering free stuff like pizza, hats T-shirts bags etc for sining up. People sign up and then close the account when the card comes in the mail, or they just fake the application. Are there any negative consequences of doing this?

Duane