The Student Credit FAQ
Author: Tom Tessin

Like any topic in life, there are so many questions that go
unanswered. When you finally get the answers, it helps better
understand the situation. To help better understand students and
credit cards, we have compiled a list of a few of the top
questions student's have asked and put answers to them to help
better your understanding.

What is the APR Rate?

The APR rate is known as the "annual percentage rate". To put
it in very simple terms, this is the rate you're going to pay on
unpaid balances. Let's say for the month of March, you have a
$500 bill and you pay off $300. This will leave you with $200.
Now, let's say your APR rate is 20%. You will apply 20% to that
$200 that you didn't pay. If you didn't buy anything for the
whole next month, your bill total will be $240.

This is why it's important to pay off your bill in time. If you
fail to pay off your bill in full each month, the finance
charges will hit you hard. This of course, is how the credit
card companies stay in business. They rely on people like you.

What is the annual fee?

An annual fee is like a membership fee. You're going to pay
this fee yearly regardless of how much you use your credit card.
If you use once or a million times, this rate will never change.
With an annual fee, you will find that most platinum or cards
with a lot perks will have this fee. A majority of the credit
cards you do apply for though will not have this. Just make sure
that when you apply, you look at the terms and see if the fee
exists.

How do I know what to apply for?

When you're applying for your first credit card, it's important
that you note a few questions. You'll want to ask yourself,
"What kind of credit card rewards do I want?", "How often will I
use this?", and "What company do I want to through?" Once you
answer all of these questions, you will have a better
understanding of what credit card will fit your needs.

You may think that visa and MasterCard are both very similar.
This is known to be very untrue. You will see that each card
company offer different rates and rewards. The customer service
also varies. Make sure that you look around online to see the
reviews that people have left for particular companies.

As for the rewards, you will want to look at all of the
different rewards you can apply for. Rewards range from gasoline
to shopping rewards. All the systems are very similar in where
you'll get points for every dollar you spend. Once you receive
the points, you'll be able to cash in on your rewards.

In the end, these are some of the top three questions that
students ask when they are applying for their first credit card.
It's important that you do your research and the best place to
do this usually is online. Try to avoid signing up for a free
t-shirt or by a mailer. There are so many choices out there and
it's your choice to apply. Be responsible and smart and you'll
do just fine with a credit card.


About The Author: If you're looking for a VISA student credit
card and/or more of Tom Tessin's work, we highly suggest you
check out http://www.findcollegecards.com/visacollegecards.htm