I want to apply for a student credit card just in case I need money while I%26#039;m in college. My mom and my sister told me not to but this is something I want to do on my own and see if I can handle it alone. I work 2-3 days a week starting Sept. and I make $9/hr for about 4hrs a shift (I work at a restaurant as a hostess). I%26#039;ll only be making probably aroun $400/month. Is a credit card too much for me to handle financially or what? Can someone please explain to me what APRs and whatever else, interest rates, intro APR, and all that other stuff that is usually affiliated with credit cards, all mean? Thanks!
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
Getting a student credit card while in college is the first step to start building your credit history. It doesn%26#039;t really matter how much you earn during college, credit card companies don%26#039;t expect you to be working while attending a college. So it%26#039;s actually very each to apply for a student credit card. http://www.iapplyforcreditcards.com/stud...
There are 2 types of APR (Annual Percentage Rate) - The APR (Purchases) represents the standard annual percentage rate for purchases; the amount one will pay in interest for carried balances from purchases made on the credit card. This rate may be variable or fixed. If the rate is variable, it may be tied to the Prime Rate, and is usually adjusted on a monthly or quarterly basis. The APR (Cash Advances) represents the standard annual percentage rate for cash advances taken out on the credit card and the amount one will pay in interest for carried balances which originated from cash advances. This rate may be variable or fixed. If the rate is variable, it may be tied to the Prime Rate, and is usually adjusted on a monthly or quarterly basis. Transaction fees may also apply for each cash advance authorized.
The intro APR is the annual percentage rate applied for a limited period of time for new applicants only. The introductory rate varies among card issuers, as well as the amount of time the rate is available for, and on what type of transactions the rate is applicable towards.
Another term you need to pay attention to is Grace Period - it%26#039;s the number of days in which a credit card bill can be paid in full without incurring finance charges.
Remember to always to pay your credit card on time and pay in full if possible. If you only pay the minimum due amount, the credit card company will charge you interest for the rest of the balance unless they are offering you 0% intro APR. The intro period varies from 6 to 12 months depending on the card offers.
http://www.iapplyforcreditcards.com/0-lo...
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
as long as you pay off your balance each month, don%26#039;t worry about it.
there are two main forms of costs to pay with credit cards: interest rate (the APR), and monthly or yearly flat fees.
the interest rate should be reasonable (18% or so), but the interest rate only kicks in if you do not pay off your card in full. the amount you do not pay off at the end of the month will start to accrue interest. with the kinds of interest that credit cards charge, you don%26#039;t want to get yourself into that or you will destroy your credit in no time. and if you destroy your credit, it will handicap your ability to take out new student loans.
so if you are responsible enough to not charge more than you can pay off each month, and can find a card without an annual fee, a credit card would definitely not be a financial burden for you.
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
Credit cards are trouble.You end up paying alot more for your purchases and you certainly don%26#039;t want an APR which means the interest rate will increase.If you must have one.Charge just enough to pay off in a month.Some of these cards have start up fees.be careful,Credit cards can ruin you.
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
You will never %26#039;need%26#039; a credit card in your life. Debit cards will work for renting cars, purchasing on line, etc.
You do need to save up an emergency fund to pay cash when you need extra money. Any credit card that you get will only have a couple of hundred dollar limit on it, so save up that much and be your own credit card. That interest rate is ZERO.
Most college students today will graduate with thousands of dollars in debt, which they will carry around for an average of ten years after graduating. Don%26#039;t fall into that trap.
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
You will find it the easiest to get a credit card with no annual fees when you are a student. Hence, I believe you should get a student card now and establish your credit.
Just make sure you pay your bills on time and do not get into debt. That is a discipline you must have.
some terms.
APR - annual percentage rate. This is the interest rate that is quoted to you. It applies when you carry a balance (ie, you do not pay in full every month). While it is important to know this, to find your real interest rate you are paying, you need to understand the following :
Whether the credit card uses the monthly periodic rate or daily periodic rate. For example, assume that the quoted apr is 10%. If the credit card uses the montly periodic rate, the rate that will apply to your balance monthly is 10% divided by 12. If it is the daily periodic rate, then your interest charges is calculated by using your average daily balance multiplied by 10% divided by 365.
If you are familiar with your math, a credit card which uses the monthly periodic rate will result in a lower effective rate compared to a card with identical apr using daily periodic rate.
Methods of calculating balance - 2 main types you should be aware of. The average daily balance method and the 2-cycle average daily balance method. Too long to explain here, but check our the resources at the end of the answer.
Introductory apr - Almost every student credit card offers a 0% apr on any balance that you transfer from any credit card. Most of the time the introductory period is six months. Since it appears you do not yet have a credit card, then this should not concern you.
Default rate - when you miss a payment, your apr will increase to a default rate which is much higher than the standard apr.
Over-the-limit-fee - Fees charged to you when you are over the limit - charges depend on how much over the limit but goes as high as $39.00
Late payment fee - self explanatory - usually $35.00
Hope this helps - but to end, here are some further thoughts.
Get your first credit card because it helps to build your credit. Once school finishes and you need to rent an apartment, get an auto loan for a second hand car, having a good credit history gets you better rates.
Make sure you pay your bills on time and preferably in full.
Set up automatic payment from your bank to your credit card so you can never be accused to being late. (make sure your bank has enough money). Having a savings and checking account is also important in establishing your credit.
You will find that most student credit cards have identical apr - prime rate plus 9.99% (for almost all cards). Only the Discover student credit card has a lower apr at prime rate plus 8.99%. All student credit cards offer 0% intro apr on balance transfers for 6 months.
Since it should be relatively easy to get a student credit card, I suggest to get a reward card. Citi MTVU, Discover student or Chase Flexible Rewards are three that come to mind.
Hope that was helpful.
Nick
I want to apply for a student credit card, but I know nothing about APRs and interest rates. Help!?
here you%26#039;ll find a few comprehensive %26amp; FREE sites that explain it all quite nicely.
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
if you get any luck please don%26#039;t forget about me lol, hope it helped you!
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