Low Interest Student Credit Cards
The last thing any college student needs is a high interest credit card. But there are plenty of low interest student credit cards out there for students to choose from.
The Highs and Lows of Credit
When you get your first credit card, you're usually in college. Credit card companies set up booths at student unions and hand out free t-shirts and have other incentives for you to fill out an application. We did an experiment. One of our writers went to a college campus and filled out an application. She stated that her annual income was $200. (Not $2,000 or even $20,000--just $200.) She did this to see if she would be denied credit based on her income. She wasn't. In fact, she got a Visa with a $200 limit. You might be wondering why credit card companies are so eager to give credit cards to people who obviously can't afford to have one. It's because they know you can't pay your balance off in full each month, so they can charge outrageously high finance charges and interest rates.
However, high interest rates are quickly becoming a thing of the past when it comest to credit cards. There are so many companies out there competing for students' business that they are all touting that they have low interest student credit cards, or that their low interest student credit cards are the best. Chase even offers low interest student credit cards with an introductory rate of 5.99% for the first six months and no annual fee!
You'd be surprised at how easy it is to spend beyond your means when you have your first credit card. And your required minimum monthly payment is so low that it doesn't discourage you. However, the more you spend without paying more than the minimum, the higher your minimum will go. Not only that, but interest accumulates on that amount. That's why low interest credit cards are so important. With a low interest card, if you can't afford to pay your total balance in full each month, at least you aren't paying as much money on interest. And that can add up quickly. So if you're a student looking for your first credit card, shop for a low interest, no annual fee card and save big.
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