Credit cards are here to stay. They make our lives so much more convenient. Many purchases like renting a car or online shopping or even reserving a hotel room are starting to be done almost exclusively with credit cards. While you can always print an online order form and mail your order with a check or money, buying with credit cards can bring your purchase to you quicker.

The sad thing is that not everyone can afford to have a credit card. Many companies have stricter rules and not allowing those with a bad credit history to have a credit card. If you have made mistakes in the past chances are that obtaining a credit card is harder. While there are companies making credit cards available to people with bad credit, it usually comes with higher interest rates and other charges. Many people believe that the extra expenses are not worth obtaining a credit card.

For many people, having credit cards are just a form of convenience as well as safety.

Being able to purchase anything from small ticket items to large ticket items at the spur of the moment without having to carry cash. Most credit card companies will not charge interest if the cardholder pays the bill in full. The typically low monthly payments usually set for credit cards also make long-term payment arrangements available for larger purchases.

Always Stay Within Your Limits

Always stay with your limits. This requires self-discipline. Try to pay off your bills as fast as possible. It would be ideal if you can pay off the bill completely. Not only will this be great for your credit ratings, but it will also keep your credit card expenses down to a minimum.

The vendor understands that when you use a credit card he will have to pay a fee. Usually the fee is very small, about half of a percent or at the most two percent. This is the cost of doing business. The retailers will factor this into their pricing.

Some people see credit cards as a necessary evil in today’s economy. Some see it as an extremely valuable tool to make their lives more convenient. Especially in-between paydays, the credit cards can come in very handy indeed!

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Tip! So if you want to prevent your family and your teen from falling into the credit card debt trap, you need to first have a sensible and disciplined approach to credit cards yourself. Teens will sub-consciously follow your financial example and behavior patterns when they have access to a student credit card.

First things first, have you ever wondered how students get to have credit cards? Have you ever asked yourself just how such student credit cards actually work?
Basically, companies that offer credit cards offer student credit cards to a lot of students. This is done via direct marketing or partner marketing. Examples of this method is the MBNA card as well as the LL Bean credit card.

Then, the student cardholder purchases something using the student credit card. A transaction is therefore made at a merchant participant.
This merchant then captures all the data found on the student credit card and acquires credit card approval.

This data transaction is then sent immediately to be processed by the bank merchant for appropriate routing to the bank who will be issuing the settlement.
After which, the merchant is then paid in an average of three working days. The same transaction is also posted at the account of the consumer in three working days as well.

Offers of student credit card varies

Believe it or not, being a student does not mean illegibility to have and own a credit card. The fact of the matter is that there are three student credit card types.
One type of student credit card is the one released by banks. This includes MasterCard, Visa, Discover.
Another type of credit card is the American Express, entertainment and travel cards as well as Diners Club.

Tip! A student credit card when not used responsibly can result to a great amount of debt that follows a student even after he or she graduated from college. The reason for this is that often times students max out their cards especially those without any money managing skills have the trouble understanding that a credit card is not �FREE MONEY�.

There are also cards that are called “house cards.” These types of credit cards that are available to students usually apply in a single store chain, such as the charge card for Sears.

Student credit card account types

Believe it or not, just as there are various student credit cards, there are also varied account types of student credit card.
Included in the basic student credit card terms is the agreement that is revolving. Through this type, a student gets to pay the full monthly amount or partially as based on the card’s balance.

Another type is the charge agreement. This is where a student promises to pay the monthly balance in full. This is so that no interest charges would incur.

Another type of agreement is the installment. This is where a student signs a specific contract that states he should repay a particular amount that is fixed over a particular time period.

Student credit card rights

Believe it or not, student credit cards also come with rights that work for the credit card holder.
Basically, this includes being protected from any unfair discrimination from having credit. The fact of the matter is that credit must never be denied anyone as based on age (legal requirement is one should be 18 years old), sex, racial background, marital status, national origin, religion.

Tip! Before you decide to get a student credit card, you should pay special attention to any fees, exclusions and restrictions that might limit the use of the card. Also, lookout for the rewards they are offering and then compare the overall costs that you have to bear.

Student credit card agreement

The act which touts Truth in Lending basically require any and all disclosure of fees or interests which could be charged to the student by the issuer of the card.
Just when and how such charges would be applied to the account is and should be explained thoroughly at the back side of the monthly credit card statement.

All in all, a student credit card is a tremendous help for any academic purchases a student might need. Thanks to the options currently available, getting one is really as easy as A-B-C.

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Tip! Applying for a student credit card is advised since it can help students in creating their credit history which they will need in the future especially in obtaining loans including car, housing or even cash loans. A great number of international students and scholars find it really difficult to obtain a credit card since they lack a credit card history.

Your child made it through high school and will be starting college in the fall. You’re so proud and can’t wait to see what the future unfolds. You’ve packed his bags and loaded the truck, and start driving 400 miles to the college of his choice. Did you forget anything?

Don’t send your child off to college without a credit card.

We all hear the stories about the child who wouldn’t leave home. You know the one who comes back home and leaves like you have a revolving door? Why not do something to benefit both your child and yourself?

Teach your child the benefits of credit by letting him apply for a credit card. It doesn’t need to be a high balance card either, $500 will do to start. Today you can get a credit card for just about anything - gas, food, traveling, flying, students - they even have designer credit cards.

Lessons of Owning a Credit Card:

1. Responsibility

Having a credit card is a responsibility that one should take on with great forethought. Credit means that a bank has faith in your ability to repay a loan. It also means that you trust your childs’ ability to make his own financial decisions in a responsible adult way.

Tip! The best student credit card will have a low limit that your child will need to watch in order to stay in a good credit standing. And they can use it to buy their school books safer than they could with cash.

2. Finance Management

Learning to use credit wisely is something not taught in our current education system. Looking at the current bankruptcy rate you wonder why not? Managing a credit card is just like managing your study schedule. It is said that for each hour of class you should study 2 hours. Same principle should apply to credit. For each dollar you place on your credit card you should put two dollars in your savings. Managing finances via a credit card gives your child a hard copy record that future businesses can look at to see what kind of credit risk your child is. Can he manage a $500 balance? Does he tend to max out his credit line and then pay the minimum balance? Does he spend frivolously or wisely?

Tip! Student credit card interest rates are a little higher because they usually have no previous credit history.

3. Problem Solving

Learning to deal with problems that naturally come with living is one of the most important lessons your child can ever learn. Let’ say he meets a girl he really likes and decides to impress her by taking her out to an expensive restaurant. Does he charge it to the card hoping that mom or dad will pay the balance? Does he decide to use what cash he has on hand to take her out? This may seem petty but the decision made on this small problem can foretell the future of his spending habits. Turning to credit every time one is faced with a problem is not wise. However, learning to live with the income you currently have is.

Tip! Then, the student cardholder purchases something using the student credit card. A transaction is therefore made at a merchant participant.

4. Investment

Most people see credit as a way to obtain ‘things’. You can now buy that blouse, jacket, ring, car, or whatever you desire at the moment. Credit was never meant to be used as it is now in America. Many people are purchasing fast food, gas, and groceries with their credit card. This is fine if you have the money coming into your savings for repayment of the loan but what if you don’t? It could take you ten years to pay off that trip taco bell if you continue in this manner paying only the minimum balance. Teach your child that it is okay to use the credit card for certain purchases especially if he is trying to build up a history of repayment. He must already make enough to purchase the item before he places it on credit. This way he is investing in his future as well as enjoying his present.

5. Safety

It’s midnight and your son gets a flat tire on the way back to his dorm. He didn’t work much last week because he took the time off to study for finals. What is he to do? He knows he will increase his work hours and start making a regular income next which would more than pay for the tire. He remembers his credit card and calls the auto club associated with the card company which he invested in for only $5/month. He buys a tire from a preferred vendor which saves him an additional 15% and puts away $4 dollars for each dollar he spent on the tire for future emergencies. The credit card and his ability to manage his finances responsibly enabled him to use his problem solving skills to invest in future predicaments.

Tip! A highly recommended alternative of an unsecured student credit card is a debit or prepaid card with a credit limit. Money for purchases made on this card is just deducted from existing funds deposited in the student’s account and when the spending reaches the limit, the student simply is not allowed to make any more purchases.

Your child is now a Senior in College and you are about to go to his graduation. You are positive about his future because you know that for the last four years he managed his finances responsibly and wisely. His future is bright and can only get better. Congratulations you made it through parenthood. Now, can you make it through grand parenting?

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