While it’s still early into the 2011 fall semester schedule for many colleges and universities, there are still considerations related to finances that students are facing and, as a result of many parents looking for ways to help their child through college financially, the exploration of student credit cards has continued here in September. Yet, the costs that students may face on these particular credit cards that are used during college have remained relatively unchanged as the averages as many students may face have stayed between 13% to 20%, but of course this will vary depending on the situation and credit card issuer.
There are some students who may find that credit card opportunities may be more available at the present time due to the fact that some banks are beginning to loosen their lending practices for specific consumers. It goes without saying that consumers who are in a good credit position stand the best chance at getting an unsecured credit card with an affordable interest rate, but many college students are understood to be in a position where they may have little or no credit history. It’s because of this, coupled with changes in credit card lending rules that are a part of the CARD Act that some parents are either cosigning for their students or students have had to wait until they are 21 and can prove they have an income sufficient enough to handle a credit card responsibly.
However, students need to focus on costs that may come with certain student credit cards due to the fact that even an affordable interest rate can become problematic if students are not careful in their spending habits. Obviously, if a student can get an interest rate around 13% or lower they stand to meet smaller overall costs when they carry a balance but students also have had problems in the past when it comes to using these credit cards responsibly, but it’s hope that credit card rule changes will decrease the likelihood that irresponsible students get access to this type of credit.
It goes without saying that students who are looking to control credit card costs must make sure that they keep their charges in an affordable range, ideally at a level where they can pay off the entirety of their charges on a month-to-month basis. Some students may feel that carrying a balance on their credit card will help improve their credit score but this is not necessarily a key factor when it comes to determining an individual’s credit rating, but many advisers feel that repaying debts quickly, responsibly, and keeping overall costs to a minimum will pay off more in the long run particularly if a financial emergency arises.
While it will depend on a student’s financial position or the situation that their cosigners happen to be in as to what rate they will receive on a student credit card, currently students who are seeking out these particular opportunities are urged to keep in mind that no matter what rate they receive, factors like fees and interest rate charges need to also have their attention, as even a card that may come with a low or prime rate can still create a great deal of debt if a student is not careful with their spending and repayment habits, or if debt is not kept low so that any unforeseen financial issues would not make their debt situation worse.