FREQUENTLY ASKED QUESTIONS REGARDING
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”.
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.
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.
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
Here are some more facts to help in your
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
high risk merchant account or
offshore merchant account for a
high risk merchant.