BEST CREDIT CARDS FOR COLLEGE STUDENTS

Almost every major financial institution that deals in credit cards has a credit card or multiple cards designed with college students in mind.  The credit industry recognizes a student's need for credit.  Students need credit for travel, living expenses, security, and, of course, class supplies.  There is also the desire of students to have their very own, very first credit card. 

Nothing makes an eighteen year old feel like they have crossed over the threshold from teenager to adult than to apply for and be granted a credit card of their own.  With the credit card companies eager to sign up students and students eager for their own credit card, the whole process can get out of control. 

 A student should make a decision to have only one credit card during their college years. A single credit card will suffice for all your expenses if used wisely.  A student shouldn't be talked into applying for a credit card on the spot because of some slick salesman on campus or the free merchandise they are offering.  Ask for literature about the card.  If you have set a goal of only one credit card then you will be less tempted to apply for every card that is offered to you. Take the time to research which credit card is best for you. One of the best ways to research credit cards is on the internet. 

There are many websites that offer reviews and comparisons of various credit cards.  You can search for credit cards aimed at college students as these would be easiest to obtain.  Then, pick out a few that meet your needs and most websites offer side by side comparisons.  This will allow you to see what a credit card offers and does not offer as compares to other cards. Then, and only then, you can confidently apply for the credit card that best meets your needs. 

There are certain features that a college student should pay attention to when researching credit card options.  First, and most important, is the APR, or annual percentage rate.  This is the interest you are going to pay on any balance you carry.  Many cards will offer a zero percent or very small interest rate in their initial offers.  However, that rate is usually an introductory rate and after a designated period of time the rate will increase.  This increase could be the average of most credit cards anywhere from ten to twenty percent; but, it could also increase to 25% up to 29%.  That means you could end up paying more in interest than the original purchase.  Second, you want to read the terms of the credit contract for fees.  You want a card that doesn't charge an annual fee, or an enrollment fee, or any other fees that strictly mean money out of your pocket and pure profit for the credit card company. 

Finally, you may want to consider a card with rewards.  Just be aware that a card offering rewards will generally have a higher interest rate.  If you are confident that you will use your card prudently and pay the entire balance every month, and then interest rates don't need to be your foremost concern and you could opt for a credit card with a rewards program.  Some student credit cards that have reward programs are:

• DISCOVER -- offers cash back rewards when you pay your balance in full every month.  That means you are building great credit history, have no debt hanging over your head, and getting a little money back in your pocket. 

• CITI DRIVER'S EDGE CARD -- This credit card for college students offers rebates that can be used towards the purchase of an automobile.

• CITI mtvU PLATINUM SELECT CARD – offers multiple points for each dollar spent in specific retailers and one point per dollar in all other spending.  It also rewards good students with 2000 points twice a year for the cumulative GPA.  Finally, it offers 25 reward points each month that a student exercises good money management.

• CITI FORWARD STUDENT CARD – This card also offers reward points for good credit behavior.  You receive 100 points each month that the bill is paid on time and remains under your credit limit.  If you elect for paperless billing and use the card responsibly for three months you will earn 8000 points.

If you are someone who has control over impulse spending and plans on paying your credit card bill in full on time, then a rewards program may be your best choice.  It gives you incentives to use your credit wisely and the best reward of all will be a solid credit history and respectable credit score to start your post college life.

BAD CREDIT CARDS INSTANT APPROVAL

People have bad credit for many reasons.  It could be due to youthful ignorance, frivolous spending, unexpected expenses (such as medical bills or auto repairs), or decrease or loss of income.  Not everyone with bad credit is an irresponsible imbecile that should never be trusted with credit again.  Yet, when a person with bad credit tries to get approved for a credit card they can come away from the process feeling like a leper. 

The major credit card institutions that offer the best interest rates and rewards won't touch someone with a poor credit history.  If you have missed payments, gone over your credit limit, or racked up late fees and penalties, it is on your credit reports for the four main credit reporting bureaus.  And, these reports are what credit card issuers use to determine who get credit and who does not.

There is hope if you have bad credit and now want to obtain a credit card.  You can apply for what the industry calls a "bad credit credit card". Many credit card companies are now developing credit cards that are specifically designed for those with bad credit.  These cards have high interest rates which ensure the credit card issuer is covered in case the credit card holder fails to make payments on time or pay the balance due.  They also often have high annual fees. 

These types of bad credit credit cards also tend to have start up fees, application fees, and other various fees.  With all these "features" in place, offering credit cards to those with bad credit is really not that big of a risk for them.  If the applicant pays their bill, they have acquired a good customer who has the potential to be a lifelong asset.  If the person does not pay their balance, then the ridiculously high interest rates start accruing and then there are the late fees and penalties all of which make the credit card issuer money.  So, it almost becomes a win-win situation for them. 

With what seems all the odds stacked against the holder of a bad credit credit cards, it may seem that there is no hope for a person with bad credit.  Yet, despite all the negatives, this type of credit card can help someone with bad credit rebuild their credit rating.  If you use the card sparingly and pay the bills on time (and in full if possible), over time your credit history will take an upward turn.  Often the issuers of these types of credit cards report your account activity on a monthly basis to the four major credit bureaus and this can have an almost immediate effect on your credit rating.  These cards can be a good tool if your goal is to improve your credit.

 If you are just looking to run up more debt, then these cards are just going to put you in a deeper hole.  You will end up spending double or more in interest, fees, and penalties than the original price of your purchase.

Many of these bad credit credit card offers are found on the internet or arrive in the mail as "instant approval" offers.  Actually, these offers are not instant approval because not every person who applies gets a credit card.  They are more accurately instant answer offers—the answer being "yes" or "no".  You provide the issuing company some preliminary information and they give you a decision anywhere from one minute to one hour. 

Beyond a preliminary approval the credit card company will usually follow up with a more detailed application or phone interview.  The financial institution offering the credit card may require the person to provide some form of references that will need to be verified.  Once you have provided all the necessary information and references if you are approved you will still have to wait up to a week to receive your card in the mail.

When filling out an "instant approval" application for a credit card, there are some steps that can improve your chances of actually getting approved for a credit card.  Be sure to fill in all the required fields of information.  Being forthcoming with all your information not only speeds up the verification process, but shows an honesty on your part that could tip the scales ever so slightly in your favor.  Remember, you cannot hide your bad credit—there are four credit bureaus out there that have all your information available for review.  Just be honest, be thorough, and be persistent. 

The approval may not be as instant as they advertise; but it is possible to get approved for a credit card. Then you are on your way to rebuilding your credit and hopefully climbing out of debt.