The Student Credit Faq

The Student Credit FAQ
Like any topic in​ life,​ there are so many questions that go unanswered .​
When you​ finally get the​ answers,​ it​ helps better understand the​ situation .​
To help better understand students and credit cards,​ we have compiled a​ list of​ a​ few of​ the​ top questions student’s have asked and put answers to​ them to​ help better your understanding.
What is​ the​ APR Rate?
The APR rate is​ known as​ the​ annual percentage rate .​
To put it​ in​ very simple terms,​ this is​ the​ rate you’re going to​ pay on​ unpaid balances .​
Let’s say for the​ month of​ March,​ you​ have a​ $500 bill and you​ pay off $300 .​
This will leave you​ with $200 .​
Now,​ let’s say your APR rate is​ 20% .​
You will apply 20% to​ that $200 that you​ didn’t pay .​
If you​ didn’t buy anything for the​ whole next month,​ your bill total will be $240.
This is​ why it’s important to​ pay off your bill in​ time .​
If you​ fail to​ pay off your bill in​ full each month,​ the​ finance charges will hit you​ hard .​
This of​ course,​ is​ how the​ credit card companies stay in​ business .​
They rely on​ people like you.
What is​ the​ annual fee?
An annual fee is​ like a​ membership fee .​
You’re going to​ pay this fee yearly regardless of​ how much you​ use your credit card .​
If you​ use once or​ a​ million times,​ this rate will never change .​
With an​ annual fee,​ you​ will find that most platinum or​ cards with a​ lot perks will have this fee .​
a​ majority of​ the​ credit cards you​ do apply for though will not have this .​
Just make sure that when you​ apply,​ you​ look at​ the​ terms and see if​ the​ fee exists.
How do I​ know what to​ apply for?
When you’re applying for your first credit card,​ it’s important that you​ note a​ few questions .​
You’ll want to​ ask yourself,​ What kind of​ credit card rewards do I​ want?,​ How often will I​ use this?,​ and What company do I​ want to​ through? Once you​ answer all of​ these questions,​ you​ will have a​ better understanding of​ what credit card will fit your needs.
You may think that visa and MasterCard are both very similar .​
This is​ known to​ be very untrue .​
You will see that each card company offer different rates and rewards .​
The customer service also varies .​
Make sure that you​ look around online to​ see the​ reviews that people have left for particular companies.
As for the​ rewards,​ you​ will want to​ look at​ all of​ the​ different rewards you​ can apply for .​
Rewards range from gasoline to​ shopping rewards .​
All the​ systems are very similar in​ where you’ll get points for every dollar you​ spend .​
Once you​ receive the​ points,​ you’ll be able to​ cash in​ on​ your rewards.
In the​ end,​ these are some of​ the​ top three questions that students ask when they are applying for their first credit card .​
It’s important that you​ do your research and the​ best place to​ do this usually is​ online .​
Try to​ avoid signing up for a​ free t-shirt or​ by a​ mailer .​
There are so many choices out there and it’s your choice to​ apply .​
Be responsible and smart and you’ll do just fine with a​ credit card.
The Student Credit Faq The Student Credit Faq Reviewed by Henda Yesti on December 24, 2017 Rating: 5

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