All About College Credit Cards

College credit cards are the credit cards that have been specially designed for college students. College credit cards are more popularly known as student credit cards. College credit cards allow the students to experience the benefits of credit cards much earlier in their life. Through college credit cards, the college students are able to learn more about credit cards and their use. In fact, for most of the students, their college credit card is their first credit card that acts as a gateway to the world of credit cards. Some other students might have previously used supplementary credit cards linked to their father’s credit card account; however, for such students too, their college credit card is the first one that is truly theirs.

College credit cards are not very different from other types of credit cards in the basic sense; they function in the same way as any credit card would. However, there are some differences, which basically arise from the fact that college credit cards are used by people who have no prior experience with credit cards and who perhaps don’t understand the concept of credit cards completely. Hence, the credit card supplier is at risk with issuing credit cards (college credit cards) to such people whom he is not sure about. Most of the students don’t have a credit history either. In such a case, the supplier of college credit card cannot be sure of receiving the credit card bill payments in time (and even receiving them at all). To counter such risks, the supplier of college credit card requires the parent of the student to co-sign the college credit card application form as a guarantee.

Moreover, the credit limit on college credit cards is generally around $500-$1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to fulfil the typical needs of a student). Another risk mitigation instrument used by the college credit card suppliers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to dissuade the students from overspending on their college credit card (and finally not being able to pay their credit card bills).

However, if we were to look at these impositions in a positive sense, we would find that these are actually in favour of the student (who is still getting trained to take on the real world of credit cards). Moreover, college credit cards also help the students in establishing a (good) credit history which is another important benefit that becomes handy when the student needs any type of loan at a later stage in his/her life.

Understanding the Process of Mortgage Lending For Preventing the Future Issues

Mortgage funds are very effective to make an investment when you do not have the money of valued property. The preference of mortgage lending is because of no restriction for getting the money. It is an excellent method to approve the money without crossing the formalities. Mortgage funding is easy to choose through reputed companies in Miami, Florida, etc. The companies are very cooperative and understand the necessity of client.

There might be many reasons for applying the fund such as buying the home, shop, commercial property, etc. As you expect the fast approval and supportive service, most companies also effort to fulfill your expectations. But many things are required to cross-check and verify during the process on behalf of the client. It is a most important factor to know some precious structures like interest rates, EMI dates, the period in approving, way of formalities, and role of a client during the process, etc.

Here the structures mean the basic knowledge but precious:

1.    Interest rates:

Most customers do not compare the prices from a couple of funding that might cause lose. Some companies take advantages of customer’s faith and apply the high-interest charge during the deal. And in most case, it also seems that interest rates are changed at the time of documentation after taking the quotation. It means the companies give the different quote but applying the various interest rates which is not favor of the client. Therefore client should be alert and also cross check the quotation while proceeding.

2.    EMI dates:

When we go for a loan that time, we do not realize the importance of date as that time we were excited. But the turns come for paying the EMI that time date matters a lot. For an example you are an employee and applied funding for a lending mortgage, your salary date is 5th, but EMI date is before the salary date then it might be difficult to manage. Many people think to adjust money after getting salary so the client must check the EMI date if it is not suitable then request to change. The date could be modified in the starting but after all process, it can never change.

3.    Read the agreement:

Many hidden policies are not described in the beginning while customer comes for the loan. But during the document formalities, many policies come appear which can make surprise the client. Some borrowers do not read the agreement and face the problem after all process. That’s why it is vital to read all agreements to make prepare and get the best deal.

4.    Role of client:

Here the role of client is meant the necessity of borrowers for the whole process. In actual, most companies understand the value of customer’s time and do not disturb them much for fulfilling the documentations work. However, it is the client responsibility to cross verification the requirement of client and how many times they will have to visit their offices.

Life With A Student Credit Card

Just how much do you really know about life with a student credit card? If you think the average student credit card is used for nothing but textbooks, calculators and pens, you may want to think twice. What some students use their credit cards for might just surprise (and even shock) you. If you want to make sure a student credit card doesn’t lead to the demise of your student, you need to keep the following in mind…

1. Understand that Parents Need To be Teachers

We send our kids off to school for an education and many of us forget that a good portion of our children’s learning needs to start at home. Yes, the schools will teach our children the fundamentals of finance; but we, as parents, need to teach our kids the basics of responsible spending and proper use of a student credit card.

2. Know the Facts

Knowledge is power, and knowing the facts about student credit card use is like taking a set of blinders off. A student credit card study was conducted by a professor named Manning. What Manning discovered should be a wakeup call to parents everywhere.

Perhaps one of the most disheartening findings of Manning’s study is that three out of five students with a student credit card maxed out that card during their freshman year. This means that kids aren’t even halfway through school and they’re maxing out their plastic. Not a good start in the financial life of a soon-to-be adult.

Another upsetting fact that Manning’s study uncovered was that some students were using their student loans to pay their student credit card bills. I’m betting it wasn’t educational expenses that racked up that credit card debt in the first place.

Add the above issues to the fact that the average number of credit cards per student is 2.8, that almost half of college students carry a balance of $3,000 or more on their cards and that the drop out rate at colleges due to financial pressure is 8.5 percent (higher than the rate for academic failure), and the situation becomes even uglier.

3. Keep It In Perspective

So what can we do about all of this?

First, we have to understand that the student credit card is not the enemy. In fact, student credit cards are valuable tools that can help students build the credit history they’ll need to survive when they graduate.

That being said, we do have to teach our kids about responsible credit card spending. If our child gets a student credit card, we have to be sure they understand that it is not a ticket for a spending spree nor is it a way to finance a bar-hopping binge.

Student credit cards should not be banned, nor should they be avoided. A student credit card should, however, be used for emergencies only. Then, and only then, can we be sure that the card will do our students more good than harm.