Does a college student need a credit card? Better yet, should a college student apply for a credit card?

We all know that new credit card laws have made it more difficult for college students to obtain a student credit card. Now college students (and anyone that signs for them) need to think twice before getting that first credit.

There are many responsible credit card usage tips that college students can follow. On the flip side, there are also many college students that will fall victim to the credit card debt trap at an early age.

The question that I often receive in some shape or form is- should a college student have a credit card?

My answer is simple- all college students should have a credit card.

Before a mob of parents runs after me with blazing torches, allow me to explain myself.

Benefits of a Credit Card For College Students:

1. Build your credit rating.
When you make your first major purchase, whether it be a car or home, you will realize that one thing is very important- your credit score. This number makes a world of a difference. Before you do anything else you need to read about the importance of a credit rating.

The earlier you get a credit card the early you can build your credit rating. Yes I do realize the flip side here but please bare with me and continue reading for now.

Your credit rating becomes very important as you graduate from college and progress through your 20s. If you begin building up your credit at an early age you’ll notice some big wins.

2. Reap the benefits of a high credit score in your adult years.
A high credit score can save you a boatload of money over the period of a loan. A high credit score means that you have good credit. Good credit means that lenders feel it’s less of a risk to loan you money. Since it’s less risky to loan you money, you can receive a lower rate on major purchases when they happen, and believe me they will happen.

A lower rate may not seem like a big deal now, but trust me it will be one day. Unless you buy your first new car or first home with 100% cash, you’re likely going to have to apply for a loan. You don’t want to be in your 30s kicking yourself in the butt for messing up your credit or for having no credit.

3. Get used to a credit card.
Chances are very high that you’re going to have to deal with a credit card for the rest of your life. There are adults that refuse to possess a credit card or are vehemently against credit cards (see: Adam Baker or Matt Jabs), but it’s fairly rare to not have a credit card.

Cutting up your credit cards is too simple and it won’t solve the problem. You should get into the habit of using a credit card and paying it off monthly ASAP.

Okay now let’s go a bit further- what if you think the reasons for having a credit card are decent but you’re still not fully convinced on student credit cards? A college student should only have a credit card under the following conditions:

Student Credit Card Conditions:

1. It’s a student credit card with a minuscule limit.
A couple of hundred bucks to $500 max! Until you’ve mastered your financial situation completely you shouldn’t accept anything over $500. A high amount of credit available to you can be very beneficial, but it can also ruin you financially if you don’t control yourself. All college students should start off with the lowest limit possible and not increase it until income grows. On top of that, it’s also becoming more difficult for college students to get more than $500 worth of credit.

2. The student credit card is used for reoccurring monthly expenses.
I’ve automated my credit card to pay for my gym membership, cell phone bill, and a few online subscriptions (I swear it’s not porn!). A simple way to build your credit without buying useless junk is to automate reoccurring monthly expenses to your credit card. We all have monthly expenses. So why not simplify your financial situation and automate your monthly expenses with your credit card?

3. The credit card is only used in emergencies.
Yes I know that some will view an “emergency” as seeing a pair of jeans on sale at Banana Republic. This is where the $500 limit comes into play. Even if you lose control and splurge, you won’t go bankrupt because of it. You’ll probably have to suck it up and get an extra job to pay the credit card off, but you won’t destroy your finances.

A credit card is also extremely critical in real emergencies. Shit will happen in life. There will be times when you need money to pay your way out of trouble. Whether it be paying for a tow truck while stuck on the side of the road in the winter to having your flight delayed. Hopefully this sort of thing doesn’t happen to you. But if it does you can use your credit card and then pay it off with your emergency fund money when you get home.

Are you a college student with a credit card? Share your story. If you’re against the idea of college students and credit cards, please share.
Source:studenomics.com

Question: What will happen if I don’t pay my credit card bills?

Answer: The first thing that happens is a derogatory remark of late payment goes on your credit file when you are 30 days, 60 days, and 90 days late. Your credit score is based 33 percent on payment history, so any late payments are a serious matter and can jeopardize new credit, insurance rates and sometimes even job applications.

A late payment could also bump up your APR to a default APR, which is quite often very steep. But continued late payments could also bring on harassing phone calls and demands for payment. If serious enough, it could lead to judgments, liens, and lawsuits for payment. Late payments are nothing to fool with.

You can demand the debt collectors stop contacting you, and if you are not subject to judgments, nothing more than a very tarnished credit history will result. But don’t bother trying to apply for more credit, a job or housing rental, all of which require a credit check these days.

Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.

Source: cardratings.com

You’ll notice that there are many people who have mixed feelings about credit cards. For some of them are horrible and something they want to and never had another love them because of all the benefits and perks I’has received in recent years. If you’a student who is looking for your first or another credit card, here are some things you might want to look.

Interest rate: First you want to find a credit card that has low interest rates. Anything less than 15% is pretty good, especially for card student loans. What is more, it can be a problem if you do not plan’to repay your bills in full each month. So, just to be on the safe side, compare the interest rates and go to one that is best.

Fees: You will find that there are more fees for some cards. There are late fees to pay annual fees and fees for almost everything. Watch this and make sure you re’does not get involved in obtaining a fee mess sound card.

Prizes: There is a credit card there with some great prizes. Did you get the money back for every purchase you will, or you’ll get points for each dollar you spend, that is what you want to look out for. Don’t get a credit card unless it is something to reward you. I have found that with my card I get points for every dollar I spend, which means that I can redeem for gift cards at a later date, or even money to my monthly statement. This is something I always look forward to when you have enough to redeem!

Reviews: It’s always a good idea to get advice from other people. Find a credit card to another people like and recommend. When people talk bad about it and tell you why you should avoid listening to them. Instead of going with a card that is rewarding, low interest rates and those who people recommend. Reviews can be helpful when it comes to looking at almost everything.

There are several cards out there for students. Although it’s important to identify what are the best and which ones are the worst. Be sure you use your smart card future and to consider all that we’spoke of above, before you ask for it!

Settlement of the debt or otherwise called debt negotiation is an attempt to reduce outstanding debt when the creditor agrees to receive a payment of subsidies that would be considered full payment. Debt negotiation is a great way to pay for any type of credit card debt, but many are not aware of this option. In this way, you can contact the creditor and negotiate a settlement of debts of credit card an amount affordable to the assistance of counsel, a settlement of the debt or May you do it yourself .

When you negotiate a settlement of debts of credit card in order to reduce the capital, in May it hurt from your credit card. But there is still a much better option than not paying a penny or bankruptcy. The last two options, it can be doubly difficult for you to get decent rates on any future loans. And even if the interest was debited from your account and balance, you need not worry as you can negotiate successfully with the credit card company.

Many people prefer to hire a debt settlement company to help in the negotiation process, but you May be able to negotiate for you. The success of a negotiation and not only saves money but also frees you from worries associated with a new credit card to transfer capital.

May you be able to negotiate debt on your credit card without hiring professionals. Some things to keep in mind if you negotiate a settlement of debts of credit card:

• You will need to find a good address for the company from the correspondence of all. Refrain from using the address on the bill that is only for making payments. Once you find the address, post all correspondence with the information about your negotiations.

• It is wise to use the mail along with receipts. This forces the creditor to honor all that you verify via email as opposed to telephone conversations.

• Also, it is essential to stay calm and remain professional during the negotiation. Do not fall for any old things and make sure not to include personal information when negotiating the amount. The simple fact of expressing your desire to pay your debt, nothing more or less.

• Keep in mind that you can negotiate your interest rate when the interest rate is more than ten percent.

So if you’re in a situation of debt credit card, know that there is a way out. Remember that at the end of the day, the credit card companies want their money and they might be willing to negotiate debt credit card in an effort to get paid.

Identity thieves others to use personal information for many things. The most common use is the credit card fraud. After obtaining a target of personal details, thieves can open new lines of credit, to divert the credit card accounts available, and go on spending sprees with other people’s money. Here is an overview of the many tactics thieves use to commit identity fraud by credit card.

The opening of new accounts
Armed with personal information such as name, date of birth and social security number, thieves can impersonate someone else to open new lines of credit. They can apply for credit cards on behalf of the victim, or steal prequalified credit offers from the target, the mailbox or trash. These sometimes contain preselected credit cards that thieves can activate it by calling a toll-free number. Many victims do not know that someone has taken the credit cards in their name until they receive calls from debt collectors or obtain loans fell due to a low credit score.

Misuse of existing accounts
In addition to opening new lines of credit, identity thieves can use them adequate information to make the audit. They are using their personal information from the victim to “verify” the thief of identity as the true account holder. Then the thief changes the account details such as PINs, passwords, billing and mailing address. Once an identity thief has control of any accounts it may be difficult to return to the proper owner before the thief wreaks financial havoc.

Skimming
Through the use of palm-sized devices for reading cards, thieves can drag all of their victims’ information card in no time at all. Skimming is a subtle, which typically crime is not detected until the victim notices of fraudulent credit card. Anyone who hands their card to an employee in the stores or restaurants is a potential target for scavengers. Some courses are also located in the gas pump and ATM card reader slots. This information card collection for identity thieves to use, and most devices are impossible for casual observers to detect.

Phishing and Vishing
Phishing is a scam that thieves use to trick victims into providing personal information. Some thieves send e-mails that appear to come from banks or popular websites. They provide a link for the recipient to follow. The link takes the victim to a login page where they enter their information to verify it. What they really do is give their contact information for identity thieves. This scam can also be stored on the phone. This variant is known as vishing. Scammers claim to be representatives of the IRS or the victim’s personal bank. They ask the victim to verify the account information and personal data, or providing a telephone number where information can be entered from a telephone keypad.

Anytime someone uses a credit card without the permission of the cardholder, the fraud was committed. Credit card fraud is very popular and profitable type of identity theft and possibly cause more financial harm to the victim. To protect yourself, never give personal information over the phone. Avoid clicking on links in e-mails. Only pay with a credit card when you have, and stick to reputable companies that you are familiar. Well look at your credit card statements each month. Some crooks are many small charges that do not trigger alerts of fraud. If you see suspicious activity on your monthly bill, contact your card issuer immediately.

The best way to protect against credit card fraud is to take proactive steps to reduce your exposure to theft and possible diligently monitor your credit file. Although these measures may be carried out free of charge, we recommend some type of protection against identity theft including theft insurance. Many of us do not have the time or energy to regularly check our credit history and identity protection services are becoming more affordable. The protection industry of identity theft has really evolved, research, products, services and approaches vary greatly.

Q: I had credit scores around 740, that before I was 30 days late twice in 4 months on three credit cards with different issuers. I am currently settling credit card debt with Bank of America. I had to take a much lower paying position, hence must settle. The deal is quite good, settling $12,000 in credit card debt for $3,800. Wells Fargo and Capital One will be next. My main concern is my credit score, after missing payments and now settling. Where would they be and how long it would take for them to recover?

A: The two 30 day late payments has already shaved close to 130 points, I am pretty sure, so let us suppose you are at 610 to 620 credit score range. Settling the remaining credit card debt with Bank of America will probably knock it down another 25 points or so. Obviously, settling a credit card debt means that the lender agrees to accept less than the amount owed on the account, thus indicating a higher level of risk. Since your credit score lost quite a few points, the debt settlement impact is less severe, since the higher the scores, the lower they fall. Once you are done with Bank of America, settling debt with Wells Fargo and Capital One will take another 40 to 50 points of your credit score.

How long would it takes to get your scores back, say in mid 600s? Probably two, may be three years of impeccable credit history. You will need to use your credit cards regularly while keeping utilization rate low, among few other things..

Q: I have 8 credit cards and have decided to pay them in full to keep them all with zero balances. Want to boost my credit score. I am currently at 652 with TransUnion. I am going with cash only. Do you think, some credit cards can be closed due to inactivity?

A: Depends on a bank a given credit card is from, your overall credit picture and who knows what else. I normally rest my credit cards around 6, may be 7 months. I have not yet had a credit card closed due to inactivity. My wife had Chase cut the credit limit on her business Visa from $18,000 to $6,900 after about a year of total inactivity. Then of course, many other issuers stepped in with their offers, so she is not complaining. I know for a fact that Target Visa gets often closed or credit limit is decreased if kept inactive for 4 to 6 months.

Capital One actually has repeatedly sent us rather nice offers with 0% percent transfer rate for 12 months and only 3% transfer fee, which is more than decent by today transfer offers, with almost everyone else asking at least 4%. Each of us has Capital One credit card that has been inactive for at least 7 months. I started using mine, because I have a feeling that after a few nice offers, the card can be closed or credit limit trimmed severely due to inactivity. I want to keep my $20,000 line of credit in tact, who knows what can happen.