Students - Do you know what your credit card is truly costing
you and how you can save money by making an online student
credit card application for a card with a lower interest rate?
Many students take out a student credit card without being aware
of the hidden fees that many credit card companies are charging.
In fact, if you don't keep close tabs on your credit card, you
may end up paying hundreds of extra dollars per year--without
ever really knowing it!
And if like most students money is tight and you're trying to
live to a budget, those hidden fees can add up! Let's take a
look at some of the most common credit card fees, and then talk
about how you can avoid them.
Grace Periods
In the past, we could always count on grace periods before we
ever had to start paying interest. For example, if we charged
our card to the limit, and could get it paid off before the
grace period expired, then it would be like a free loan--we
wouldn't have to pay any interest.
Unfortunately, the credit card companies are making this harder
and harder to do. For starters, many of them have reduced the
traditional 30 day grace period to 20-25 days.
If you hold a credit card, but didn't realize this, then you're
likely paying interest without even knowing it! What's worse is
that more and more credit card companies are eliminating grace
periods altogether. That means if you charged lunch today at
noon, at 12:01 pm, you would be already paying interest on it.
How about your credit card? You need to take a close look at the
fine print and find out what kind of grace period you have. If
your credit card company has reduced it significantly, or
eliminated it altogether, you should seriously consider
canceling it and getting a more user-friendly card.
Late Fees
When is the last time you checked to see what amount your credit
card company charges you for a late fee? The truth is that these
fees have doubled in just the past ten years, and that, combined
with the reduced grace period, means that the credit card
companies are raking in a lot of dough on late fees!
If it's possible, you should try and send off the check (or
electronic transfer) the day that you receive your credit card
bill. There are three reasons why it's important never to be
late. The first is obvious; you will want to do everything in
your power to avoid a hefty late fee. Next, if you are late, it
will likely be reported to the credit agency and you will have a
bad mark on your credit report. The third is the direst, and
we'll discuss it below.
Interest Rate Hikes
Did you know that if you are late--even one time--on your credit
card payment, the company will in all likelihood raise your
interest rates? That's right; one late payment gives them the
right to do it. What's more, that isn't just limited to your
credit card payment. Any late payments from any lender that show
up on your credit report gives them the justification to raise
your rates, so be careful!
Key Tips For An Online Student Credit Card Application
Stop paying high charges and interest rates. Find a 0 apr
student credit card and look for introductory periods of 12
months for balance transfers and purchases. You should also be
able to find a student credit card options with rebates on gas,
grocery and other great rewards.
About the author:
Jeff Brown is the writer of many articles on personal finance
and credit card use. He has pulled together the best reward
cards and interest rate offers on one site. For more
information, please visit:
http://www.creditcardsdoctor.com/categories/student_credit_cards
