Student credit card offers
A credit card is something so common that there is not a person in America who is not aware of it. Credit cards are used for retail transactions and the user either pays in one lump sum or can pay a percentage of the outstanding by revolving the debt.
ISO 7810 lays down standard shape and size for all credit cards. This is an international standard that defines three formats for identity for cards. ID-1, is applicable to credit cards
In America a credit card is an essential ingredient of every day life. Students who form a great part of the American population are thus not immune to this phenomenon. As such they form a target group for card issuing companies. Student credit cards are becoming more and more popular, But despite the offers they receive its important for them to seek advice on what credit card is best suited for their specific needs. They can also surf the Internet and examine all available offers and select the best of them. It would be best to carry out a comparison of all the offers and select the card after that. The aim is to avoid unwelcome debt, which could burden the student.
A credit card has some advantages. Students holding credit cards must be very careful and not run up unnecessary debt. There is no denying the fact that debt of younger people particularly students has gone up with the advent of the student credit card. This increase in student debt has alarmed many people. Lawmakers, consumer advocacy groups and college officials have been seized of this problem since the last decade and a half.
The major credit card companies are responsible for this. They have targeted the student populace with vigor. This accusation against the card companies is not without merit. The companies must explain their targeting of this young crowd as many of them are already in debt with college tuition fees and college loans to pay back. They are also nave and less experienced about the world of finance. A recent study by United College Marketing Services has shown that student credit lines have increased to over $6,000. But the usage of credit cards continues to grow. In fact Credit card usage has tripled since 2001 amongst teenagers as well. The minimum age for consent to opt for a credit card is 18 in the US and most countries of the world. A credit card at this young age can have a deleterious effect as the student is not employed and earning nothing. Thus the likelihood of damaged credit scores and unwise use of credit facilities increases greatly.
With even 18-year-old eligible for credit cards without parental consent undergraduate college students own credit cards in great numbers. Statistics show that freshmen that are first-year students in college or university have the lowest percentage of credit card possession. Only 54 % subscribe to a credit card. However a sophomore who is a second year student has credit card ownership of 92%, which is a whopping 38% more than freshmen. An interesting point that emerges is that for many students who enter college as freshmen these days, the first experience of credit is through a credit card whereas ten years ago it was through a student loan.
The proliferation of credit card among students has also had a negative effect. The average debt balance among card-carrying undergraduates has risen from $1236 in 2000 to $1,770. This is an indicator that more students are using their cards regularly. It also indicates that many students are not paying off their balances every month. However there is some good news also. Statistics show that higher end balances on credit cards have declined. Thus students having balances of more than $ 7000 in 2000 has gone down.
Student credit cards are the subject of study by many institutions. Nellie Mae Corporation, which focuses exclusively on undergraduate and graduate students, has conducted three credit card studies since 1998. Another study in 2001 has brought out the fact that 83% of undergraduate students have at least one credit card; a 24% increase since 1998. Also students triple the number of credit cards from the time they enter college to the time they pass out (graduate)
The study also showed that students on graduating have an average of debt of $20,402 in combined education loan and credit card balances. This is not a healthy sign An interesting fact that emerged is that Students residing in the Midwest have the Highest credit card balances while the students from the Northeast use credit Cards the least.
A student is not an earning member of society. Therefore its vitally important for these Persons to select a credit card diligently and after due thought. A word of caution is needed here. If you get into debt with a credit card company, you must make a monthly payment, otherwise you are open to legal action. In that case try and talk with a Company representative so you can plan your repayment. If required consult a financial Counselor who may be available on the campus.
Finding the right credit card will require some research on the internet. A student must keep in mind that the card he or she selects must have low interest rates, simple terms, low annual fees, good rewards and incentives. He must also insure that there is a guarantee against fraud and good after sales service.
For a student the attraction in getting a student credit card lies in the terms and conditions of the cards. Student credit card providers will allow you to borrow without having any regular income at all. However, student credit cards generally charge a higher than average interest rate. All major credit card companies including Visa, master card and Discover issue student credit cards. Owning a card is a good thing if you can mange your finances judiciously.
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