Student credit cards are becoming more and more popular, many undergraduate college students are carrying credit cards. The percentage of students holding at least one card has risen significantly in the past few years.
If you became old enough, decided to apply for your own credit card and start financial life, try a Student Credit card first.
Student cards designed especially for high school and college students and have special student offers and benefits. No earlier credit history or minimum income required, so it is also a good chance to start building the credit history.
If you turn 18, you become prime target for credit card issuers and can get a card without a parent's signature or knowledge. You will have to use your student credit card in a responsible way. These cards may determine your financial future, so you need to have some basic information about building good credit.
But it is better not use credit card without your parent's agreement, because they may know more about credit and how it works, or they can even help you find the best type of card.
When searching for a card, consider how you plan to use it. Do you expect to pay your bills in full each month, or will you pay off your purchases over time? Consider the annual fee, finance charges, balance computation method, and whether or not there is a grace period.
Finding the ideal credit card will take some research and time. Try to look for cards with the following features: low interest rates, low or no annual fee, clear and easy terms, and attractive rewards related to your needs. Think about the advantages and disadvantages of the cards before you apply for one.
Generally young people do not realize how quickly debt can come and how difficult it can be to get rid of it. The case is that many graduating students in the United States have huge amount of credit card debt when they finally leave college.
Student credit cards can be useful if they are used properly. But if you don't pay attention to your credit and don't use it wisely, you can easily have debt problems and your card will do more harm than good.
If you would like to build good credit, be careful with your spending. Try to avoid some typical traps that students usually fall into. First of all, pay your bills fast to avoid late fees. Afterwards keep track of your charges, always avoid over-limit fees, and do not exceed your credit limit. Don't forget that average interest rate on student credit cards are generally higher.
Use your card smartly and only for emergencies. If you can pay your coke or pizza with cash, keep your plastic in your pocket. After all, your card will be useful.
Interest/APR/credit card math problem...something like that? [for a high school pre-calculus student]?
Here's the question:
You have credit card charges totaling $15,750. The interest rate of your card is 10.5% APR. They tell you the minimum payment is $135. The amount of interest due each month is figured as:
Current Balance x (yearly APR/1200)
(Here the APR is not changed to a decimal.) The remaining amount is applied to lowering the principal (the current balance).
1. Make a table that shows the months, the interest paid, and the new current balance. Use a computer spreadsheet with the following headings:
Month / Current Balance / Interest / Amt applied to principal
2. Will you ever get out of debt with the credit card company? If so, when? If no, why not?
3. Make a new table with a minimum payment of $150
a. Will you ever be out of debt?
b. If not, why not? If so, when?
c. How much interest will you have paid over the time of the loan?
Formulas to use for 3b and 3c:
3b. U = M- (M-Pr/12) (1+r/12)^12t
U= unpaid balance
M= monthly payment
P= amount borrowed
t= time (years)
r= rate (decimal form)
3c. U= P [rt/1-(1/1+r/12)^12t -1]
U= total interest paid
CAN SOMEONE PLEASE EXPLAIN THIS MESS TO ME?!?!?
Answer
There's a lot here -- I'm going to start (I never know if people really check back). I'll assume you know some spreadsheet lingo.
Put the titles (Month, Balance, etc.) in row 1 columns A, B, C, D.
Start with 0 (month 0) in A2
Start with the 15,750 (balance) in B2.
Put 0 in C2 and D2 (nothing's happened yet).
That completes row 2, which is just the initial balance.
Row 3 is month 1. Put 1 (month 1) in A3. The interest (C3) is going to be the old balance (B2) times the interest rate (10.5/1200). So C3 is +B2*10.5/1200.
The new balance (B3) is the old balance (B2) plus the interest (C3) minus the payment (135). So B3 = +B2+B3-135.
The amount paid to the principal (D3) is the payment (135) less what went to interest (C3) so D3 is =135-C3.
That completes row 3.
You now can copy row 3 down (spreadsheet lingo) to find out how it will go in the future. And the miracles of spreadsheets work.
Posted in 
Tags: 