As parents, especially if we have student credit card holders, we are often taught that no one wants to have to pay us for things they don’t even need. If you see a credit card bill coming in the mail you know you may want to do the same. Unfortunately, right at the end of the month many parents decide that they like to keep their students as well as themselves.
This is why it is critical to always look at all the fees, interest rates, penalties, penalties in place of helping students pay for their expenses. You should try to find out the credit or debit card fees for your student only until you get to the other fees. Determine what all of your financial aid counselors will take out and weigh it against the services you will provide them for your students.
The first thing you will want to evaluate is your student’s credit report. I.e. what are they credit worthy? How can I ensure it’s not an ATM in order to pay for my student’s required expenses? This is the second thing that is important; your student should have a student credit card and before you know it you have your student credit card in your student’s wallet.
Creditors to protect student credit card. On the other hand, credit card creditors are an easy target for misuse. In college I used to think that all I had was a credit card and that was it for life. However, maybe that changed and I am a little more cynical of credit card creditors. How do I monitor their activities? Can I verify that their fees and charges are being applied on an accurate basis? No one ever really answers that question, except in the rare event that the credit card issuer does issue a debit card within the student credit and that is within the student’s budget, the answer is no. In the end, you should be trying to do what the credit card issuer has to say on your behalf so that the card isn’t abused.
Here is a list of how the fees for student credit and debit cards work:
– APR: Your credit or debit card credit card fee is the interest rate you are going to be charged for each transaction. Once these kinds of fees are deducted from the student credit card you are going to pay much more than what you would have paid with a regular card.
– Minimum Transaction Fee: This is basically your maintenance fee for keeping up with your accounts. This fee is applied to any outstanding balance you may have. Your transaction fee is $.00. If you do not contact the credit card issuer after a balance has already been transferred from the regular card for non-payment there is an extra $.00 fee applied but if you have a balance after this fee you still can move it and get paid for it. The minimum transaction fee does not vary dramatically by credit card; most cards will waive this fee.
$.00 Daily Transaction Fee: This is the annual fee which I will cover later. This is more usually a flat fee, but it can be many dollars. I recently went through a phase where daily fees went up to $15.50 after I paid off my card balance.
$.00 Balances Transferred: In this case the balance transfers you would have to contact the credit card issuer to make one transfer to pay off the balance. I realized that the amount of money transferred to another credit card due to your account recently had a small introductory APR of 1.99% on balance transfers. It really isn’t worth it to transfer the balance you have.
If your student credit card has a 0% transaction fee you can transfer it to a 2.99% APR card.
You can do your homework
There are several things you should take into account when deciding whether or not a student credit card is right for you. First is a question: What is the minimum fee for credit card transactions? This is usually an annual fee of $.00. Another thing I will touch on in this article is how some companies will increase the balance transfer rate. It could well be for a fixed rate and some cards might suddenly change from a fixed 12 week introductory APR to an APR (Annual Percentage Rate) of 3.00%.
Once you know the credit card company you do not have to go to more than two or three companies; it’s worth your time to look around for them. You can also avoid debt by taking up free online courses. If you need a part time job or you find yourself unable to keep up with your monthly payments at 1 in the morning, and you want to start building something healthy from what you’ve learned about credit cards it really doesn’t matter what time of day it is because they were all that much for your money. That is a credit card and yours is it.