FREQUENTLY ASKED QUESTIONS REGARDING STUDENT CREDIT

 Like several topics in life, several questions go unanswered regarding credit for students. There is a strong myth in the market that “students don’t get credit easily”. This is completely wrong. Also, when you find the answers to your questions, you will be in a better position to understand the product. This article answers some of the most frequently asked questions regarding credit for students including a credit card for them called the “Student Credit Card”.

1)    What exactly is an “APR”?

The APR is an abbreviation for “Annual Percentage Rate”. In very simple terms, this rate is used to calculate how much more money you have to pay to the bank for taking credit from them. For example, suppose you have an outstanding balance of $500 on your “Student Credit Card” in the month of March and you only pay back $300. Then, your outstanding balance will be $200. Now, the credit card company’s APR rate is twenty percent. Then, you have to pay an interest of 20% for the $200 which is your credit balance. If did not use your credit card for the whole of next month then your total bill would be $240.

This explains why you should pay off the credit card bill on time. Also, try to reduce your credit balance because it will keep increasing even if you don’t buy more stuff.

2)    Annual Fee – What is it?

It is nothing but a membership fee. Every credit card holder has to pay this fee each year whether or not he has used his credit card. This is a fixed price and does not change depending on the number of times you swipe your credit card. Most of the credit card companies don’t charge this kind of a fee for students and therefore you should look into the fine print before you apply for the card. If this fee exists then dump this provider and go to another one.

3)    How can I decide which is the best one for me?

If you are getting your first card then you should ask your self some questions like “Which company is good?” “How many times will I be using it?” and “Do I need rewards?” Write down the answers for these questions and examine them carefully to find your answer of which credit card will be the best for your needs.

Here are some more facts to help in your decision.

MasterCard and Visa are not similar. The rewards, fees and rates offered by each of them vary. The other important factor that is different is the “Customer Service”. The best way to find out about them is to read reviews from people who have used them. Beware that the reviews might be biased and therefore, make sure you are reading the right ones.

There are different kinds of rewards that you will be eligible to apply for. It ranges from shopping to gasoline rewards. The systems give you some points for each dollar spent by you, which can be redeemed later. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.