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| Getting the Best Credit Card Rates |
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Along with your regular student loan payments, regular credit card payments can also assist in establishing a solid credit history. And sometimes having a financial cushion of credit available can rescue you in a financial pinch. When considering credit card offers, consider your own spending habits. Consider collecting several different applications and examining the terms of the offer thoroughly before you apply. This way, you can find a card that is right for you and avoid unnecessary inquiries being added to your credit report. Some things to consider before you apply:
- Find out what the Annual Percentage Rate (APR) will be. Is there an introductory period that will be raised extensively in the coming months? Is there an annual fee?
- Are you planning to use the card for cash withdrawals? Find out what fees are charged when you use this service.
- What is the penalty for late payments? Is a one-time fee charged or does the APR also increase when a late payment is made?
- How are the finance charges calculated? Depending on how the finance charges are calculated, you could end up paying more even though you have a relatively low APR. Be sure you understand billing cycles before you apply, so that you don’t end up paying more monthly fees than you expected.
- What special features or programs does the card offer? Are they relevant to your lifestyle?
You should also be aware that having too much revolving credit available might decrease your credit rating. Some lenders may view all the extra credit available as an opportunity for you to overextend yourself. Even if you are not using the credit card now, you could charge it to the limit tomorrow and be in over your head. To prevent excessive credit from hindering your attempts at apartment hunting or obtaining additional loans, it is a good idea to maintain just a few revolving credit accounts.
Congratulations on your accomplishments and good luck with your future endeavors. If you remain organized and stay on top of your credit and finances you could be well on your way to financial success.
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