The tips for getting the best student credit card aren’t that different from getting any credit card. You need to make sure your credit report is clean and do your homework on what the credit card companies are offering. One of the main issues to understand about credit cards is that they are all different. The fees and interest rates and terms for credit cards can be miles apart, so it is important that you know what you are signing up for. You have to look at the options to get the credit card that’s right for you.
Tip Number 1 – Your first Credit Report
As a student, you may not have much on your credit report. But you still need to make sure that what is on it actually belongs to you. This is a great time to look at your reports and start paying attention to your credit rating. In this day and age, the credit reports are sometimes looked at by prospective employers. Having erroneous information on your report can do lasting damage. So before you consider applying for any credit card, take a look at what has been reported on your credit history.
Interest rates and terms for credit cards will be dependent on your credit rating or the credit rating of your co-signer if you are under 21 years old and will need a co-signer to get a credit card. The first step should be making sure that your credit report is as clean as you can make it.
There are several services that offer you to see your credit report for free. One of these services is https://www.annualcreditreport.com/cra/index.jsp. Once a year this central site allows you to request your free credit report from all three of the consumer credit reporting companies. These three nationwide companies are Equifax, Experian and TransUnion. Once you’ve looked at your report you can usually submit online any changes or discrepancies that you find.
It isn’t unusual to have erroneous information on the credit report and often you can send in the discrepancies through an online process. It will take about ten minutes online to fill out the information and get the reports. Then as a student with little or no credit it should just take you a few minutes to review the reports and verify information. If there are mistakes or corrections to the report it can take up to thirty days for the incorrect information to be verified and removed.
Tip Number 2 – Comparing Companies and Cards
Some things are easy to compare. Like annual fees. The card either has them, or they don’t. Interest rates are more difficult. Is there an introductory rate that only lasts for six months or so, then goes up? Is it a set interest rate, or variable? If the rate is variable, what is it tied to?
If you are looking at and comparing introductory offers, make sure you know how long the introductory rate lasts and what the rates and terms will be once that time has expired.
Tip Number 3 – Other Options
There are other options besides a “regular” credit card. Depending on what you need, your credit history or how you plan to use the card one of these other options might be something to consider.
Secured Credit Cards
One option for students might be a secured credit card. This type of credit card requires a security deposit on the account in the amount of the credit limit. The deposit is held in a special savings account that will accrue interest, but can’t be accessed by the account owner.
The credit card can be utilized for any purchases, including for online purchases. After the card holder has made consistent on time monthly payments for a year, the card issuer will generally re-evaluate the account and release the security deposit. At this time the card holder will be assigned a credit limit.
Prepaid "Credit-Cards"
These cards are not actually credit cards but are a type of stored value card. There is no credit check for these types of cards and no interest is paid. The parent or student simply makes a deposit to stores money on a card.
The cards can be used for online payments and purchases and they are branded by Visa, Discover or American Express. These prepaid cards can be used just like any credit card. The money stored on the card is reduced each time the card is used. Make sure you understand any fees associated with the pre-paid card.
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One of the true facts of our times is that all credit cards are not created equal. The fees and interest rates and terms for credit cards vary so widely that comparing companies and cards can be a real feat. But you have to do it to get the best credit card for you.
Tip Number 1 – Start With Your Credit Report
Often the interest rates and terms for credit cards will be dependent on your credit rating. Getting the credit card is definitely dependent on your rating and the information on your credit report. So the first step in shopping for a credit card should be making sure that your credit report is as clean as you can make it.
Go to one of the services that allow you to pull your three credit reports for free and take a look. Try https://www.annualcreditreport.com/cra/index.jsp. This is a central site where you can request your free credit report, once every twelve months. You will get information from all three of the consumer credit reporting companies. These three nationwide companies are Equifax, Experian and TransUnion. This site will also allow you to submit almost all of the changes or discrepancies online.
It isn’t unusual to have erroneous information on the credit report and often you can send in the discrepancies through an online process. It will take about ten minutes online to get the reports, a few minutes to an hour or so to scan the reports and verify information, and up to thirty days for the incorrect information to come off.
Tip Number 2 – Compare and Contrast
Start with the basics. Is there an annual fee, and how much is it? What is the interest rate? If you are comparing introductory offers for credit cards, make sure and take that next step and compare how long the introductory offer is for, and what the terms and conditions are once the introductory term expires.
As you are comparing the basics, take a minute and consider how you will be using the card. For instance, if you travel a lot, does the card provide flight insurance or car insurance on rental cars? If you travel overseas, what are the fees to convert charged purchases from the currency of the country you are in, back into US currency? This fee can vary from 0% (Citibank Visa) to 3% and over.
Tip Number 3 – All Visas Are Not Alike
Nor are all MasterCards. These cards are offered by different banks, credit unions, etc and each offering is going to be different. For instance, my credit union Visa has a 9.9% interest rate that hasn’t varied in over five years. The bank down the street has a 13.9% interest rate, and an offer I received in the mail today for a new Visa Card…17%.
What does stay the same is American Express. They have different types of cards, but they all come from the one company and the interest rates and fees are set by product and your credit rating. The same with Discover Card. You get the Discover Brand Credit Cards from Discover, not a plethora of banks and other financial institutions.
So you can pretty much go to Discovercard.com and AmericanExpress.com and look at all their offerings and compare their cards features, rates and terms side by side. But to compare Visa’s and MasterCards you need to make a spread sheet and include where the Visa or MasterCard is coming from. There are online card comparisons that you can utilize for this. Do a search on the internet for credit card comparisons and see what you come up with.
Just a hint, these comparisons usually don’t include your local banks or credit unions. So don’t forget to go to their websites or call them for the information to compare services.
With all the new rules and regulations, it might pay you to compare any credit cards you already have to what is available now. And keep up. Do a comparison once a year to make sure you are still getting the best deal, best service and have the credit cards that work for you.
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Business Credit Cards are not just for large corporations, they can be used by any size business. A business credit card enables even small companies to purchase goods and services on credit, with the promise to pay at a later date. Business credit card issuers differ greatly in their products. The fees, interest rates and terms for business credit cards vary greatly and comparing companies and cards can be very important. Here are some tips on getting the best credit card for your business.
Tip Number 1 – Credit Report
Often the interest rates and terms for a business credit card will be dependent on your personal credit rating. If the business is new, or it is a small business, the issuer will look at your personal credit rating. So the first step in shopping for a business credit card should be making sure that your credit report is correct.
Pull your three credit reports for free and make sure the information on them is correct. Try https://www.annualcreditreport.com/cra/index.jsp. This is a central site where you can request your free credit report on an annual basis. This site will provide the information from all three of the consumer credit reporting companies. These three nationwide companies are Equifax, Experian and TransUnion. This site will also allow you to submit almost all of the changes or discrepancies online.
Tip Number 2 – Secured Business Credit Card
If you have bad personal credit it might be difficult to get a business credit card. There are things you can do to improve this standing so that eventually you will be able to get a business credit card or business loan. One of the options is to apply for a secured business credit card. You can apply for one online or through many financial institutions. A secured card will require you to make a security cash deposit that is equal to the credit limit you are asking for.
Once you get the secured business credit card, you can use it for your expenses. It will allow you to make online purchases, pay for travel and be utilized as you would any business credit card. Then as you make your monthly payments, you will rebuild your credit history. Make sure you choose a provider that reports your business credit success to the reporting services.
Once you’ve had the secured card for a year, you can request that your status be upgraded to a non-secured account. Some of the credit card issuers will do this automatically, but make sure you understand the guidelines for your upgrade.
Tip Number 3 – Compare the Business Credit Cards
All business credit cards are not created equal. Terms, interest rates, rewards and other options vary greatly. You need to make sure you compare all the information. Some cards have annual fees, and the annual fees can vary greatly from $75 or so a year to several hundred. The same thing is true with interest rates. They can vary by double digit percentage points so make sure you evaluate all the options. If you are comparing introductory offers for business credit cards, make sure you know how long the introductory offer is for, and what the terms and conditions are once the introductory term expires.
Besides comparing the basics, consider how you will use the card and make sure to look at the extra fees and benefits. For instance, if you travel a lot, does the card provide flight insurance or car insurance on rental cars? If you travel overseas, what are the fees to convert charged purchases from the currency of the country you are in, back into US currency? The conversion fee can vary from 0% to 3% and higher.
Don’t forget to look at the rewards programs. Do you get cash back? Or points for travel and other purchases? To utilize these rewards do you have to hit a specific threshold? For instance, there is one business credit card out there that requires you to make $100,000 worth of purchases in a year before you can really utilize their rewards.
Summary
With so many options out there it is well worth spending the time to research the different cards and card issuers. Things change fast, and there are new cards and options coming out all the time. Do a comparison of any business cards that you have at least once a year to make sure you are still getting the best deal, best service and have the right business credit card for your company.
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Most major retail stores offer their own credit cards. While many are similar in features, there are some that are better than others. While some people choose to obtain a card from every store that they shop in, more and more are instead being more particular about which cards they want in their wallets. Below are three tips for receiving the best store credit cards.
Read the Fine Print
Sometimes the issuers of a store credit card will make promises of “no payment for six months” or “no interest for a full year”. The problem is that if you do not read the fine print, you will not learn that once the period for the promised special terms is over, the interest rate will be nearly thirty percent.
Sometimes, such special deals are wonderful, but only if you fully understand all of the details. For example, sometimes if you make even one late payment, the special terms are off and you have to begin paying the full interest rate.
Other cards offer what seems like a good interest rate, but the fine print says that the rate can be raised at any time. Some consumers who have great credit are surprised to receive a notice in the mail informing them that their interest rate has skyrocketed. They wouldn’t be surprised, however, had they read the fine print.
As with any credit card company, the store wants you to apply. They know that if you get approved, there is a really good chance that you will use the card. They make the card sound as favorable as they can in the promotional materials. It’s up to you to learn the truth by reading all of the fine print.
Know Thyself
Sometimes which store credit card is the best deal will vary depending on the person. For example, a new homeowner who may need to replace several major appliances may do well by applying for a card to a store that specializes in such products.
When you are making a decision about applying for a store credit card, you need to consider more than just the terms of the card. You also need to look at your needs and be honest with yourself about how you will use the card.
In addition to knowing your needs, you also need to know a little something about your self control. If having a store credit card with an $8,000 limit is going to cause you to go on a shopping spree until every dime of your credit limit is used up, then this is not the best store credit card for you.
A Sound Decision
A sound decision about whether to apply for credit is never made based on the possibility of receiving a ten percent discount. In other words, do not apply for credit simply because you are tempted by such an offer as you checkout.
Applying for any credit should be a decision that you make after weighing all of the options and doing sufficient research about the credit product for which you are applying. When you make a snap decision at the register, you do not have time to either think about or do the needed research.
Choosing the best store credit card is certainly about the interest rate and other features of the card. Still, you must also consider other factors such as how you plan to use the card as well as well as your overall credit situation.
If the result of adding another card to your wallet is going to be more debt and a lower credit score, then there is no store credit card that is the best for you.
If you do have a need for a store credit card, be sure to learn all that you can about the card before applying. Also, if you have a good credit score, call and talk to customer service rather than applying online or through the mail. Ask if they will be willing to grant you a lower interest rate based on your excellent credit history.
Many financial experts say it is best to shun all store credit cards in favor of keeping just one or two major credit cards. If you plan to ignore this advice, do some research so you can know that you are getting the best possible deal.
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Prepaid credit cards can be convenient, especially for those who cannot obtain a traditional credit card. Others choose to keep a prepaid credit to use when shopping online so that they do not have to risk the account numbers to their other credit cards being compromised. Whatever the reason that you are considering one, look below for four tips for receiving the best prepaid credit cards.
Shop Around
Some people think that all prepaid credit cards are the same. This is not the case. Some charge just one fee per month while others have a whole menu of fees such as transaction fees, service fees, even fees for loading more money onto the card.
You will need to examine each card’s fees along with the way that you plan to use the card to determine which prepaid credit card will be the best deal for you.
For example, if you only plan to use the card once a month to shop online, then it would make more sense to get a card with a per transaction fee and a lower monthly service fee. If you think you will be using the card a lot, then you should find a card with a higher monthly service fee and no transaction fees.
Read the Fine Print
As with any type of credit card, you really need to take the time to read the fine print. Some cards have clauses that begin to charge you extra fees if you do not use it for a few months. Others state that you cannot use the card to order items over the phone.
You need to know how you want to be able to use the card and then read all of the fine print to make sure that the card you choose will meet all of your needs.
What in a Name?
Some prepaid credit cards will have your name embossed on the front like a traditional card, while others will not. For some people, this may not be an issue, but some need to make sure that the card you choose will have your name on the front.
If you plan to rent a car or book hotel or airfare, you will absolutely need to have your name printed on the front. If not, these places will not accept this form of payment.
Of course, you will need to wait a bit to receive your personalized card. Many retail stores sell prepaid credit cards that you can buy over the counter, load some money right at the cash register and leave the store with a card that is ready to use.
Obviously, you will not be able to do this with a personalized card, but for many it is worth the extra wait to know that you will be able to use the card for most applications.
Call Customer Service
It is a good idea to call the customer service number just to get an idea of how difficult it is to reach a real person. If you find yourself on eternal hold, find another prepaid credit card company. While you do not necessarily anticipate having any problems, you still want to know that, if you do, you will be able to get help quickly.
Go For a Bonus
As more and more companies compete for a share of the prepaid credit card market, many are beginning to offer reward programs to their customers. These programs are similar to the rewards programs of many traditional credit cards.
The rewards will vary greatly from card to card. Some may offer a cash back percentage. Others will issue reward points, which can be traded for merchandise or travel.
Keep in mind that often the cards that offer rewards have fees that are a bit higher to cover the extra expenses. Still, if you plan to use the card a lot, finding a card with a rewards program may not be a bad idea.
Whichever prepaid credit card that you choose, be sure to manage it wisely. Most have additional – and hefty – fees that are charged should you try to complete a transaction for which you do not have ample funds.
Like any other type of credit card, prepaid credit cards can be a useful tool, but one that must be managed well to avoid it becoming a hindrance rather than a help.
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