Smart Spending With Student Credit Cards
Posted by: Staff Writer | Jul 15,2007
|
|
College students have no trouble finding legitimate reasons for using a credit card. And sometimes they find less than legitimate reasons for using a credit card. The bottom line is that more students have credit cards than ever before. This can be a wonderful opportunity for young adults focusing on education, but credit card ignorance can quickly lead you into deep financial jeopardy. Try to answer the following questions and see how smart you are about using your credit card.
What's Your Interest Rate?Interest rates vary with astonishing differences. Sometimes cards geared just for students will have the highest rates allowable. However, once you've shown some trustworthiness, either you could apply for another card that offers a lower rate, or you could call the bank and ask them for a better interest rate.
If you're not paying off your bill in full each month, your interest rate is one of the most important things you should pay attention to.
What is Your Grace Period?A grace period is how much time the credit card company gives you between the day you make a purchase and the day they start charging you interest. It could be 30 days, 20 days or even immediately upon purchase.
What's a Typical Grace Period?A typical grace period means that unless you paid your previous month's bill in full, you're going to pay interest immediately on any new purchases.
Do You Know What Happens If You're Late Paying Your Bill?If you're late paying your credit card bill, you will be hit with a late fee, usually about $30 (but higher for some cards), your interest rate could go up and a negative report might be made to the credit bureaus about you.
Do You Know What Happens If You're Late Paying Any Bill?Credit card companies have the right to raise your interest rate if you're late paying any bill, not just the credit card bill. It's called Universal Default and not all credit cards will do this to you, so be wary of this very important clause.
What Do You Do If There's An Error On Your Bill?Sometimes on your bill, you could find you were charged the wrong amount or you were charged for something you didn't even buy. If this happens, call the credit card company and explain the problem. While you don't have to pay the part you think is wrong, you do have to pay the rest of your bill.
|
|
Print
E-mail
Del.icio.us
Digg
