A student credit card is a credit card generally issued to 18 to 21 year olds that are attending college. New laws and regulations will require the student to prove they have the means to pay for the charges placed on the card, for example having a steady job. Or they have to get a co-signer for the card that is over 21 years old, can prove they have the means to pay the charges on the card, and will take responsibility for those charges if the student doesn’t pay.
Below you’ll find three questions that are frequently asked about student credit cards.
Should I get a Student Credit Card?
This is a question only you and your parents can answer as there are many considerations. A student credit card can be a very good thing. It can help you establish a positive foundation for the future as landlords, insurance companies, and even employers will often use your credit history to help them make a decision on hiring you, allowing you to live in their property, or to set your insurance rates.
You will need to asses when and how you need to use a student credit card and determine how to ensure you meet the monthly payments.
There are so many options out there that you do need to take the time and look at several card offers before making your decision. Make sure you compare things like annual fees, interest rates, penalties and any other fees and terms for the card. Often card issuers will have introductory offers.
It is important to compare the introductory offer and term, as well as the fees, interest and other terms for the cards once the introductory term expires. Make sure you understand how long the introductory term lasts. New regulations require that it be at least six months, but it could be longer.
Where can I get a Student Credit Card?
If you already have a checking or savings account, check with your bank and see if they offer student credit cards. You can also check specific credit card websites, or do an online search comparing student credit cards. Many credit unions offer credit cards that will have a lower interest rate without all the rewards options or annual fees.
The online sites that compare student credit cards will often provide you the information on the top four to eight most popular student credit cards. They should break down the fees, interest rates and other terms and benefits for each specific card.
They will usually allow you to apply for the student credit card online. Some of the sites will take you through a selection process to help you determine which option makes sense for you based on what you plan to use the card for and your personal circumstances. Many of the sites will offer information on how to use the student credit card responsibly, how to budget for a credit card and how to protect your credit rating.
A few of these online sites are studentcreditcards.com, studentplatinum.com, credit.com, and findcollegecards.com. You can also do an internet search for compare student credit cards and find similar sites.
What are these new credit laws I keep hearing about?
Companies issuing credit cards to students, and everyone else, have new rules and regulations to govern their lending habits. These new rules start taking affect beginning the third week of February 2010 and all will be in place by August 2010. The new credit regulations are intended to protect consumers and keep them informed about the credit cards they use.
Student Credit Cards are specifically affected by the new regulations. Now companies are not allowed to offer on campus students free gifts just for applying for the credit card.
The other main change to the rules for students it the one we mentioned above where an under 21 year old will have to show they can repay the debt on their own, or they will have to get an adult to co-sign. The co-signor has to agree to take responsibility for the debt and prove that they can pay for it.
loading...
Related Links:
The first credit cards were proprietary cards issued by department stores and gasoline or oil companies in the early 1900s. There have been many changes since those days. Choosing a credit card can be a complicated process and there are so many choices of card and issuer.
The most frequent questions these days have to do with the changes to the laws governing credit cards. These changes are being phased in with everything in affect by August 2010.
How will the changes to the credit card laws affect me?
Many of the changes have to do with restricting the amount of interest that can be charged. It also means the terms and statements will be easier to understand. The changes are also supposed to keep companies from arbitrarily changing the interest rates and then charging consumers the new rate, retroactively.
Or the card issuer makes changes and then sends a notice that most people can’t understand. The companies that issue your credit cards will now have to inform you before the rates are changed, in clear and obvious language what those changes consist of.
Some of the credit industry’s biggest card issuers and credit analysts foresee that these changes will mean that many cards will go back to charging an annual fee for the card. Since the interest rates that can be charged are now restricted, there will be larger upfront fees.
These same analysts believe that awards programs will start to go away and that the credit card bills will become payable immediately instead of having a grace period of thirty days on new charges before they start charging interest.
Because of the new regulations, credit card companies can no longer mail the bill and have it due three days later. The issuer has to give you twenty-one days from the date the bill is mailed or received before it is due. They have to give you advance notice of changes, and that notice has to come 45 days in advance of a change, if they are going to change the credit card’s terms.
You now have the right to “opt out” of certain changes. This will give credit card holders the chance to say no to the change, cancel the card and pay the bill off under the old terms. You have to make minimum payments on time, and you have to pay off your balance in three years, but you don’t have to accept the changes in term. The 45 days’ advance notice of changes is supposed to give you time to look for a new card to replace the one you’ve got.
There are also certain features that you need to “opt in” for. An example of this type of feature is over-limit fees. The card holder has to “opt in” in order to be able to go over their limit and pay a fee to do so. If you don’t “opt in,” to use this feature, then if you go over your limit, the transaction will be denied.
Is it true that my college student won’t be able to get a credit card anymore?
For the most part, yes it is true. If your student is under 21 years old, they will only be able to get a credit card account if they have adult co-signers on the account that can prove they can and will assume the responsibility for the debt.
Another change for students is that the credit card companies can no longer market on campus if they offer promo items. Like free pizza or gifts if the student fills out a credit card application.
If I am late on my other bills, will that raise my credit card interest?
The answer is yes. The term for this is Universal Default. Credit card companies can look at your credit report, see that you have late payments with someone like your utility company, and then raise your interest rate based on this information even if you’d never made a late payment to the credit card company. The difference under the new credit regulations that take full effect in August 2010 is that now they have to give you 45 days notice of the fact that they are changing your rate and why. Before they could just do it, and in fact some changed the rate retroactively.
loading...
Related Links:
A business credit card enables companies to purchase goods and services on credit, with the promise to pay at a later date. There are several types of business credit cards and business credit card issuers often offer several different business products within their brand. Choosing the right card for your business can be difficult. Here are some answers to basic questions about business credit cards.
How big does my business need to be to qualify for a business credit card?
The answer to that question is there are no size limitations. In the past business credit cards were only issued to large companies and corporations, but today you can get a business credit card even if you are a home-based business owner with only one employee. The business credit card would have your company name printed on the card and come with many of the benefits that larger corporations enjoy.
If your business doesn’t have a credit history then the personal credit of the owner will be used to determine whether or not you get a business credit card and what the limit for that card will be. It is important to ensure that the owner’s personal credit report is correct. To do this, utilize one of the online credit review sites like www.annualcreditreport.com to get a copy of all three of the credit reports and challenge any discrepancies before you shop for a business credit card.
If your personal credit history won’t allow you to get a business credit card, there are options to help you build credit and have a credit card that you can used to make business purchases. This is called a secured credit card.
A secured business credit card is available for those companies or personal owners with either bad credit history or no credit history. You get a secured credit card by applying for it, and then submitting a security deposit to the account. The amount of security deposit will mirror the amount you are given as a credit limit. If you make your payments on time, a secured business credit card works to rebuild your credit. Once you’ve made payments for a year, the credit card issuer will re-evaluate your credit history with them and should issue a regular business credit card without the security.
Why does my small business need a business credit card?
The advantages for a small business owner start with helping to establish credit for the business, versus your personal credit rating. Your business expenses will be separated from personal purchases, making bookkeeping and tracking expenses for tax reporting easier. Often the annual summary will break your expenses down and categorize them for you, which will help you budget specifically for your business.
There seem to be a lot of reward business credit cards, are they really worth it?
The answer to this question depends on your business and how you utilize the business credit card, it also depends on the terms and conditions for the specific reward card. Often the business rewards credit cards have higher interest rates than non-rewards business cards. They often charge an annual fee for reward cards, while non-reward cards usually have no fees.
So check the differences between card types very carefully. If you plan on paying off your charges each month in full to avoid the interest costs, it might be worth it. Or if you can get a business credit card with awards at a similar rate to a non-reward card it can provide some definite benefits.
A quick perusal of award cards showed that there are options like 3% cash back from gas stations and office supply stores, with 1% cash back on other purchases. Some of the card issuers allowed redemption of awards for as little as $50 in reward money, while others had much higher reward limits. As with any credit card, you need to understand the benefits and the costs and then compare these benefits to your estimated spending patterns.
Summary
There are so many options available for business credit cards. It is important to take the time to understand what those options are and compare the fees, interest rates and benefits of the cards you are interested in. There are several online comparison websites that will help you do that. To find one, search – business credit card comparison.
loading...
Related Links:
Those who own businesses are interested to know the basic characteristics of these unique loans, and three of the most common questions that they want answered are covered below.
1.What is a Business Cash Advance Loan?
As its name suggests the business cash advance loan is an advance in cash paid to a business owner based on their projections for future revenues. In other words the lender determines how much money the business will make over the next several months and then offers to make a cash loan in exchange for a cut of that future business income.
The loans are repaid by designating a share or percentage of the business owner’s sales and that is typically done by guaranteeing the lender a portion of the money made from credit card receipts. If you take out a loan this month, for example, you might repay it by giving the lender payments that are a percentage of your credit card sales over the next few months.
Because you are paying based on a percentage and not a set payment amount, if you record higher sales you’ll pay back more of the loan – but during months that your credit card sales are less you will be paying less money to the lender.
2.How Do Business Cash Advance Loans Differ from Bank Loans?
There are two aspects of business cash advance loans that make them especially unique and different from your typical commercial business loan.
• One way that a business cash advance loan differs from your typical bank loan is that there is no fixed repayment schedule – a feature that is always found in conventional commercial loans. So in other words you don’t have to make payments each month in equal installments like people are accustomed to doing with car loans and mortgages.
• The second big difference between these loans and mainstream bank loans is that the cash advance loan industry does not have to follow the same legal guidelines that banks and other traditional lenders do. So merchant cash advance loans are not regulated by the government or the banking industry the way that other commercial loans are.
That has created some resistance from the traditional banking and loan community, because they feel that cash advance loans should also be subject to the same kinds of regulatory oversight and scrutiny that their own lending practices must adhere to and follow. Because cash advance business loans operate in a rather unregulated environment, some lenders charge very high rates of interest. It is not uncommon for a business cash advance loan to cost the business owner interest that works out to more than a 100 percent annual percentage rate or APR – and some lenders will even charge 200 percent APR.
That would never be allowed with a typical bank loan, but for lots of business owners who have been turned down by banks these cash advance loans are useful and helpful, despite the high costs.
3.Are These Loans Here to Stay or Just a Product of the Recession?
The idea of cash advance business loans is relatively new, but it started before the most recent recession and has been part of the lending industry since the beginning of the 21st century. These days, of course, because of the credit crisis and the inability for many businesses to find financing the niche for merchant cash advance loans is growing rapidly.
There are dozens of companies who now make these loans across the USA, and it looks like they are definitely here to stay because they are doing a brisk business because although they carry high rates of interest they are relatively hassle-free and easy to get loans that can be processed fast and get business owners the cash need with hardly any questions asked.
Currently cash advance lenders constitute what some experts estimate is about 10 percent of the market for commercial loans to businesses, and that figure is expected to either stay steady or continue to grow. The one wild card or variable that could change those projections is if Congress decides to start regulating the cash advance sector the way that banks are governed. There are lots of new financial institution regulations coming down the pike this year, but it is unlikely that those will impact the business cash advance industry anytime soon.
loading...
Related Links:
Gift cards are a very popular way to give a gift to someone. You don’t have to worry about size, color, or individual taste. In this case, one size fits all, as long as you pick a store or restaurant that the recipient likes.
However there are a few things you need to think about or decide on before you purchase a card. The following are some of the most asked questions concerning gift card purchasing.
What value do gift cards come in?
The answer to that question depends on where you buy the card. Some merchants set a beginning price of $25.00, with the ability to go higher than that in nearly any increment. Some businesses might have a lower minimum and some more expensive establishments might even have a higher minimum. It’s something you will need to ask before you buy. I received a $5 gift card from Starbucks at Christmas that was just the right amount for one coffee drink.
How long is the gift card valid?
This too depends on the place the card is bought. Some businesses have a one year limit, with others having a five year limit. One thing you can be sure of, there will be a limit. Quite a few of the cards will have a decreasing value starting with several months after purchase. A gift card should really be redeemed as quickly as possible after receiving it to get the full benefit of the card.
In the US there are new Federal Regulations on gift cards that will go into place on August 2010. This new law insures that the card must not expire for five years and that no fees can be assessed if the card is used within the first 12 months. If you have gift cards that were issued before August 2010, use them. There are some gift cards that may become null and void when the new regulations go into effect.
Can I get my money back if the card is lost or stolen?
The answer to that question is usually a definite NO. Gift cards are normally cash cards not registered to a specific name but to a card ID number. Anyone can use them. You need to think of a gift card as though it were cash in hand. If you lose cash, you’ve just lost it-no one pays you anything for it. The same is true with a gift card. By the same token, if you find one that still has a balance on it you might as well use it because there isn’t any way to trace it back to a specific person.
How do I check my balance?
This is fairly easy as most cards can be read by a cashier. If the card is for a specific business you would need to check with a cashier in that particular store or a branch of that business. If it is a gift card that can be used anywhere any cashier should be able to scan it and tell you the balance. Sometimes there is a number or website on the back of the card where you can call or go online to check balances.
Does all the card value have to be used at once?
That answer is a general no. But it might depend on the amount that is left on the card. If the balance left is only a few dollars, by the time you get around to using it again the few dollars may have decreased to a few cents or nothing at all because of “no-use” fees or other charges.
In most states in the United States the establishment issuing the card can make up their own rules and regulations. They can even change those rules after you’ve bought the card and not bother to tell you of those changes. They can charge an interest on the card and deduct that interest when the card is used. And as explained above, the card can have an expiration date even if that wasn’t specified when the card was purchased.
Some of these business practices will be managed by the new federal government regulations, but not all of them. If you are spending very much money-or any money- on a gift card you really need to get some written commitments concerning the card.
loading...
