College students often find themselves paying only the monthly minimum payment on each of their credit cards due to limited funds. It is not uncommon however, paying only the minimum payment can lead to outrageous interest accumulation which can cause you to owe much more than you originally charged. Of course, this is what many credit card companies want. It is how they make their billions. Since you are a college student and you are about to enter the real world, you can be smart right now and think about using credit card consolidation to pay down those large balances.
How Does Credit Card Consolidation Benefit You?
The main benefit to credit card consolidation is lowering your monthly payment. All of your credit card debt is rolled up into one payment, which is most often lower than what you had been responsible for paying before with all of your payments combined. Credit card consolidation helps you to lower your amount of debt faster and can also save you money over time. And with your monthly payment lowered, you have more spending money throughout the month to use towards other college related expenses such as rent, books, or even a new computer to use for school assignments. Credit card consolidation is a wise choice for college students who want to enter the real world debt free.
How to Choose A Credit Card Consolidation Lender
There are several choices in lenders when it comes to credit card consolidation. A quick online search reveals about 814,000 results when you search for ?credit card consolidation lenders?. Your first choice should be to speak to your personal bank. If you have good credit and a bank account, you might be able to obtain a personal loan to use to consolidate your credit cards. This option allows you to keep your credit accounts open, which is the best choice. Closing your credit card accounts does not look good on your credit report. The longer you have kept a credit card account open and in good standing, the better your overall credit score will be. If you choose to use a personal loan to pay off your credit cards, be sure to watch out for high interest rates on the loan which could defeat the purpose of credit card consolidation. You can choose to use a debt consolidation company to help you with your credit card consolidation, but you will likely be asked to close your credit accounts. If you have a tremendous amount of credit card debt that you can't possibly pay off without help however, a debt consolidation company may be the best choice for you.
Be Smart About Consolidating Your Credit
If you are going to take the initiative to consolidate your credit cards, be sure to stick to your plan. That means you cannot rack up your credit card bills again just because you have zero balances. Additionally, you must be sure to make your monthly payments on time to keep your credit in good standing. As a college student, credit card consolidation can be a wise choice if you do it the right way and for the right reasons.
Credit Card For College Students
When it is time for your kid to go to college, especially to move to another city or state, you realize that your baby has grown so big and he or she is about to start living on their own. And it is quite natural that many parents worry about their children. Financial issue is one of the areas that causes parents' concern the most.
A college student can have a part-time job, but, parents understand that this kind of income is not enough to cover all kid's needs. And at this point, parents together with their children should make a decision on how they are going to provide financial support to their teenage student kid. Here are the main options: a debit card, a student credit card, cash or making a kid an authorized user of your credit card.
As for a debit card, it is a pretty good option. Taking into account the fact that an 18-year-old young adult does not have a credit history yet, getting a debit card can be a wise decision. You can deposit some certain amount of money on the card each month and your son or daughter is free to spend this money on their everyday needs, or maybe save some part of it for tuition.
Actually, the version with a debit card works just like cash, but a plastic is much more convenient and easy to use. Debit cards are accepted nearly everywhere. And your child will not have to worry about interest rates and penalty fees, so he or she are protected against collecting significant credit card debts. Debit cards, by the way, are gaining popularity with students.
Student credit cards are a good chance for young people to establish credit history. However, using credit cards requires financial management skills, responsibility and a lot of common sense. Really few young adults possess the above-mentioned qualities. And unskillful credit card management can result in enormous credit card debt by the graduation time for a student.
So, all of the student-financial-support options listed above have their advantages and drawbacks. Let's take a closer look at making your kid an authorized user of your credit card.
So, when you make your child an authorized user of your credit card, he or she gets a separate plastic and access to your credit card account. They can legally use your credit card funds anytime. If you have a cash back plastic or some of the point rewards cards, you will get credit card bonuses for our kid's purchases. That is a good thing.
Another good thing is that your kid will not have to deal with credit card applications, agreements, obscure credit card terms and do any other paper work associated with paying credit card bills. But you should keep in mind that it is you who will be entirely liable and responsible for every dollar spent by your beloved offspring. You will have to pay off the balance.
But you should trust and be 100% sure in your child's consciousness and certain degree of responsibility. As your kid's financial missteps can mess up your credit score and credit history really bad. Besides, an authorized user cannot build credit history through using your credit card. Moreover, you can be charged a fee for having an authorized user on your credit card.
So, it is up to you to choose how you want to support your kid in financial terms. Or, maybe your child is mature enough to make his or her own decision and choose a credit card or one of credit card substitutes. Then you are welcome to compare student credit offers at http://www.select-credit-card.com.
Both Richard Macgrueber & Evelyn J. Francis are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Richard Macgrueber has sinced written about articles on various topics from Banking, Credit Cards and Debt Reductions. Learn how to take control of your personal finances by utilizing credit card consolidation debt management services. Read articles found at the. Richard Macgrueber's top article generates over 2900 views. Bookmark Richard Macgrueber to your Favourites.
Evelyn J. Francis has sinced written about articles on various topics from Credit Cards, Finances. Mostly acclaimed as a financial observer Evelyn J. Fancis is very interested in consumer finances and student credit card applications (. Evelyn J. Francis's top article generates over 4400 views. Bookmark Evelyn J. Francis to your Favourites.
