college student decides to apply for a student credit card, they
should know the basics of credit and how it works. Credit should be
taken very seriously and not "applied for" because someone on
a college campus is offering you a Frisbee
if you apply for their credit card.
You can apply
for first time student credit cards at your convenience, when YOU are ready. We recommend you learn the basics of
building GOOD credit before you apply for any student credit cards. A credit
card might just be putting the cart before the horse. Be careful when
you build your credit as it WILL come back to either haunt you or help you.
Note: Schoolwork.org does not list credit cards.
StudentCreditCards.com is a
good website if you are looking to apply for a student credit card.
This site also provides informational articles on building good
student credit cards
still available for college students, browse both prepaid and student
credit card offers. Click on the card
below to visit them.
Student Credit Cards in a Responsible way:
on the following pages we provide you with the information and insights
on how to build GOOD credit, as BAD credit
can cause you much heartache. The following information is not
financial advise, but we do advise you seek the help of a local
Financial Advisor if you are in search of professional guidance.
Credit card delinquency could
prevent you from qualifying for other types of loans, such as a home
loan, auto loan or payday loan. When you miss a payment on your student credit
cards, you may receive a call or other correspondence reminding you of
your overdue balance. Be sure to pay at least the minimum
payment seven days before the actual due date printed on your monthly statement.
Protect Your Credit Record
bills promptly to avoid late fees.
track of your charges.
- Do not
exceed your Credit Limit.
avoid Over-limit Fees.
any change of address prior to moving, this way you will receive
your bills right away.
Credit Card Rights
Credit Billing Act for consumers applies to credit cards and can be used
errors on your account.
use of your student credit card account.
- Goods or
services charged to your account, but not received.
for which you request an explanation or written proof of purchase.
*If your card is lost or stolen, you will not be held liable for any changes made
by unauthorized persons.
Billing and Charge Disputes
- If you
see an unauthorized charge on your statement, write to the creditor
or card issuer within 60 days after the first bill containing
the disputed charge is mailed to you. However, if more than 60 days
have passed since you were billed for the item, you still might be
able to dispute the charge if you only recently found out about the
your letter to the address provided on the bill. Do not send
the letter with your payment.
specific in your letter. In your letter, give your name and account
number, the date and amount of the charge disputed, and a complete
explanation of why you are disputing the charge.
- Keep a
record of receipt to document that your letter was received. You
might wish to send it by certified mail with a return receipt
follow these requirements of receipt, the creditor or credit card issuer must
acknowledge your letter in writing within 30 days of receipt and conduct
an investigation within 90 days. While the bill is being disputed and
investigated, you do not need to pay the amount in dispute. The
creditor or student credit card issuer may not take action to collect the
disputed amount, including reporting the amount due as delinquent, and may
not close or restrict your student credit card account. If there was an error or
you do not owe the amount, the creditor or card issuer must credit your
account and remove any Finance Charges or late fees relating to the
amount not owed. For any amount still owed, you have the right to an
explanation and copies of documents proving you owe the money. If the
bill is correct, you must be told in writing what you owe and why you
owe it. You will owe the amount disputed, plus any finance
Your Student Credit History
"Fair Credit Reporting Act" controls how your credit history is kept, used
and shared among lenders and creditors in the USA. It is designed to ensure
accuracy as well as the privacy of the information used in the three
reports. Two of the three following major Credit Reporting Agencies have credit
files on millions of consumers nationwide:
P.O. Box 2104
Allen, TX 75013-2104
P.O. Box 740241
Atlanta, GA 30373-0241
who takes adverse action against you in response to a report supplied by
a Credit Reporting Agency – such as denying your application for
credit, insurance, or employment – must give you the name, address,
and telephone number of the Credit Reporting Agency that provided the
have a right to know what is in your credit report, including
medical information and, usually, the sources of the information.
Make sure your report is accurate.
your report for free if a company takes adverse action against you
based on the report and you request your report within 60 days of
receiving the notice of the action.
one free report a year if you can prove that you are unemployed and
plan to look for a job within 60 days, if you are on welfare, or if
your report is inaccurate because of fraud. Otherwise a Credit
Reporting Agency may charge up to $8.50 for a copy of your report.
you find inaccurate or incomplete information in your report:
both the Credit Reporting Agency and the company that provided the
information to the Credit Reporting Agency.
the Credit Reporting Agency in writing what information you believe
is inaccurate. The information provider must investigate and report
the results to the Credit Reporting Agency. If the information is
incorrect, it must notify all nationwide Credit Reporting Agencies
to also correct your file. If the reinvestigation does not solve
your dispute with the company, ask that your statement regarding the
dispute be included in your file. A notice of your dispute must be
included anytime the Credit Reporting Agency reports the item.
Other than yourself, only people with a legitimate business need can get a copy of
report. An employer or a prospective employer can only get your credit
report if you give written consent. Student Loans and Student Credit Card Creditors, employers, or insurers
cannot get a report that includes medical information without your prior
of Negative Credit Information
A Credit Reporting Agency can report negative information for seven to
ten years, and bankruptcy information for ten years. Information about a
lawsuit or an unpaid judgment against you can be reported for seven
years or until the statute of limitations runs out, whichever period of
time is longer.
Choosing Student Credit Card Applications
student credit card
for additional resources and credit card information.
terms vary among issuers. When shopping for a card, think about how you
plan to use it. Do you expect to pay your bills in full each month, or
do you plan to pay off your purchases over time? Consider the Annual
Fee, Finance Charges, balance computation method, and whether or not
there is a Grace Period for purchases.
student credit cards do not permit a grace period for the amounts due if you use
the Cash Advance or Balance Transfer features, even if
they have a Grace Period for purchases. It's also a good idea to look at
the Credit Limit and how widely the card is accepted, as well as the
plan's additional services and features. Consider and compare all terms,
including the following, before you select a student credit card:
Percentage Rate (APR) and Finance Charges
The APR (Annual Percentage Rate) is a measure of the cost of credit,
expressed as a yearly rate. The card issuer must also disclose the
"periodic rate," which is a rate applied to your outstanding
balance to figure the Finance Charge for each Billing Cycle. Some
cards plans allow the issuer to change your APR when interest rates or
other economic indicators (called indexes) change. Because the rate
change is linked to the indexes' performance, these plans are called
"Variable Rate" programs. Rate changes raise or lower the
Finance Charge on your account. If you're considering a Variable Rate
card, the issuer must also provide information that discloses to you:
- That the
rate may change.
- How the
rate is determined, which index is used and what additional amount
(the "margin") is added to determine your new rate.
credit card plans allow the issuer to "reprice" your current
APR if the account falls into poor standing or becomes delinquent.
Card Repricing is the act of increasing the APR.
Some issuers charge annual membership or participation fees. They often
range from $25 to $50, and sometimes reach as much as $100.
"Gold" or "Platinum" cards sometimes reach as much
as several hundred dollars. These fees may be charged whether or not you
use the credit cards.
Computation Method for the Finance Charge
If you don't have a Grace Period or if you expect to pay for purchases
over time, it's important to know what balance computation method the
issuer uses to calculate your Finance Charge. This can make a big
difference in how much of a Finance Charge you'll pay Ð even if the APR
and your buying patterns remain relatively constant.
of balance computation methods include the following:
Daily Balance: This is the most common calculation method. The
issuer totals the beginning balance for each day in the Billing Period
and subtracts any credits made to your account that day. While new
purchases may or may not be added to the balance, depending on your
plan, Cash Advances are typically included. The resulting daily
balances are added for the Billing Cycle. The total is then divided by
the number of days in the Billing Period to get the "Average
Balances: Issuers sometimes use various methods to calculate your
balance that make use of your last two months' account activity. Read
your agreement carefully to find out if your issuer uses this
approach. This is the sum of the Average Daily Balances for two
Truth in Lending Act requires a lender to inform you of the cost to
borrow, so that you can compare the cost and terms of credit offered
by various lenders.
UPDATE: Alternatives to traditional
Prepaid cards have become a helpful tool for those
without the ability to obtain a regular credit card. They have also
become popular with consumers without bank accounts as the funds are
deposited directly into the prepaid credit card account. This means
the person is using money they already have and are not relying on
traditional credit. If credit is too big of a step, consider
credit cards online, side by side. And while comparing
NOTATE "Fees" associated with using the prepaid card under
consideration. This may help in making a decision on a particular
card. Government federal agencies can consider the
U.S. Debit Card Program.
Editor's thought ~ With the many laws which affect
credit cards and consumers, a new strong bill headed by Senator
Richard Dodd [D], with many other intelligent attorneys and senators,
the CARD ACT has been signed into LAW. For Young Consumers: "no
tangible gifts to college students in exchange for completing a credit
card application;.." This is a good ting because on campus credit card
hustlers will not be allowed to hand out gifts, "tangible gifts" in
exchange for completing a credit card application. College students
and their parents can now learn about credit first, education the
student and compare a credit card when they are ready themselves.
2 of our STUDENT CREDIT SECTION.
: student credit card > 2