What is good credit cards for student
Like many of your fellow college students Canadian, as you no doubt the idea of having a credit card and the convenience that goes with it. However, do you know that credit cards have caused enormous debt problems for many young Canadians like yourself? If you do not pay attention to your choice of credit card and how you use it, these debts may haunt you for many years to come.
If you were a Canadian student with no regular income and no credit history, a secured credit card would be a very appropriate choice for you. A secured credit card is a credit card that requires you to deposit a certain amount of money in a savings account before it is approved. Cash on deposit in your savings account as security for your credit card. Your credit limit will also be set depending on the amount of your deposit. Some credit cards will guarantee the credit limit on the total amount of the deposit while others will allow it to be a percentage of the amount deposited.
As a student, there are two main advantages of using a credit card guarantee. First, it prevents you from spending more than you can afford. In other words, it prevents you from incur debts that you cannot pay. Secondly, it helps you establish a credit history. Most students who apply for a credit card does not have one before. They generally find it difficult to get the application approved, because they cannot provide any proof of their credit history. A secured credit card is an excellent first step in creating a clean credit record.
When you choose a secured credit card, there are several things you should check. A number of choices exist for Canadian students, but not all are equally good.
Taxes. When you are shopping around for a secured credit card, make sure you always take note of expenses that are charged. Some Canadian cards charge you literally hundreds of dollars, quickly eating up the deposit in your savings account. Some even come with hidden fees called “record” or “set up” charges. The best would be a map that does not charge any fees at all, but it is common for there to be a small time fee. Generally speaking, a nice annual fee for a credit card security, which are in the range of $ 20 to $ 35.
Interest rates. Just because you do not have a steady income or credit history, this does not mean that you must accept an outrageous interest rate on your credit card guarantee. A reasonable interest rate for any secured credit card should never exceed 19%. Take your time and find the card that offers the most competitive. It will be helpful to the long-term effort.
Beware of fine print. When you sign the contract guarantee your credit card, make sure you read every word on this document. You must understand the obligations you have on your credit card. What is your grace period? What happens if you make a late payment or incomplete? Are there additional fees for this?
Getting a credit card is not as difficult as you think. It is much harder to control your expenses once you have one.
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[…] Wonk Room » Home Page wrote an interesting post today onHere’s a quick excerptWhat is good credit cards for student Like many of your fellow college students Canadian, as you no doubt the idea of having a credit card and the convenience that goes with it. However, do you know that credit cards have caused enormous debt problems for many young Canadians like yourself? If you do not pay attention to your choice of credit […] […]