According to CreditCards.com US Student Credit Cards charge whacking great annual percentage rates (APR’s) that top rates applied on other card categories.
Figures listed below:
Low Interest 11.41%
Balance Transfer 11.41%
Bad Credit 12.81%
Cash Back 13.13%
Reward 13.66%
Business 13.95%
Instant Approval 14.18%
Airline 15.08%
Student 17.88%
The problem is that fluctuations in the Fed’s prime rate is heaping further misery on student cardholders because a majority of banks base their credit card APRs on an index tied to the prime rate.
According to the U.S. central bank: “54% of credit card issuers tie card interest rates to prime.”
That’s a whole lot of misery for young students struggling to meet interest repayments.
College debts can be a millstone around your neck so it’s wise to give careful consideration before using that credit card.
According to an interesting article at Central Michigan Life.
“College students often run into problems with credit card debt because they use them for everyday expenses,” said Charles Walmsley, financial planner and finance and law professor.
“The biggest mistake college students make when it comes to credit cards is living beyond their means,” he said. “They tend to spend more money than they have.”
Given that the average college freshman carries $1,500 worth of credit card debt, according to a 2005 study by student loan company Nellie Mae, and 56 percent of undergraduates have obtained their first credit card by the age of 18 this is a very real problem for many.
“Credit cards are very easy to acquire for college students, making credit card debt prevalent for them,” Walmsley said. “Credit card companies will relax credit standards to take on more customers at a higher rate, like college students.”
How true!
However with some prudent planning and shopping around you can keep your credit card debts in check. Here are some key tips:
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If you’re a college student you may want to check out the Chase +1 Student Visa Card with Flexible Rewards.
Aesthetically it’s a very nice looking piece of kit - shades of the Amex Black!
Chase say:
“When you buy your clothes, gear and tunes why not choose to reward yourself? Save with low interest rates, get great cardmember benefits, and establish your credit history at the same time.”
The features include:
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In a rather unusual marketing ploy JP Morgan Chase is using a New York bike taxi company called BicyTaxi to offer free trips into the city for Ann Arbor students.
Here’s the catch - the bikes are kitted out with speakers that pump out the latest strap line for the Chase +1 Student Visa.
So if you live in Ann Arbor and fancy a free trip into the city watch out for cabs operating 9 a.m. to 3 p.m.
The offer lasts Monday to Thursday until Nov. 2.
(Via BankNet)
For students looking for credit you may want to take a look at the Capital One Classic Visa Card.
• No Annual Fee.
• Between £200 and £2,500 in spending power.
• Credit limit increase - simply use your card, stay within your credit limit and make your payments on time and we increase your initial credit limit on your 4th statement.
• A FREE choice of card design.
• Spread your payments.
• Typical 34.9% APR variable.
As always Credit Card Cool recommend caution to all students taking on debt via credit cards. Be weary and be sensible.
Credit Card Cool award a *** ranking out of a potential ***** star ranking for this Credit Card.
