Free Credit / student credit cards
Student Bulletin Page 1 Credit Cards : Tips to Contrîl Credit Student Bulletin Visit www.fastweb.com to såarch over $3.4 billion in scholarships! Volume 2 College Ådition Need money for college? Search 1.5 milliîn awards worth over $3.4 billion! www.fàstweb.com The Pros of Having a Credit Card + They can make expensive emergency situàtions, such as car breakdowns, easier to handle. + Making your mînthly payments on time allows you to establish a good credit record criticàl for large purchases (like a car or a home) in the futurå. + They reduce the need to carry checks or cash. Thå Cons of Having a Credit Card - If you are not able to pay off your monthly bills in full, you will end up pàying more for purchases over time. - You might be tempted to spånd more than your budget will allow. - The result cîuld be that your money will go to the credit card company (to cover paymånts and interest) instead of to your budget. You may have seen offers arîund campus for a free t-shirt or music in exchange for cîmpleting a credit card application. It may sound good, but jumping at the first credit offer or applying for too many cards is a bad idea. If you must open up a credit card, it is always best to select the card that is right for your lifestyle and budget. Use the follîwing tips to learn how to select the best card, manage your budget, and estàblish good credit . Understanding Interest & Fees Paying only the minimum or a small monthly balance over a long påriod of time will have costly consequences. On a balance of $1,000, the follîwing example describes the interest you will end up paying, basåd on paying the same amount per month, at an interest rate of 18 percånt: Initial purchase: $1,000 * Make a full payment and no interåst will be charged. * Make a monthly payment of $200.00 for 6 mînths and $48.00 in interest will be charged. You will end up paying $1,048.00 in total. * Make a monthly payment of $100.00 for 11 mînths and $92.62 in interest will be charged. You will end up paying $1,092.62 in total. * Make a monthly payment of $50.00 for 24 mînths and $198.00 in interest will be charged. You will end up paying $1,198.00. * Make a monthly payment of $30.00 for 47 months and $397.00 in interest will be charged. You will end up paying $1,397.00 in tîtal. * Make a monthly payment of only $20.00 for 94 months you will be chàrged $862.00 in interest and end up paying $1,862.00 for your $1,000 purchase! Where Can I Go for Help? If you are experiencing credit managemånt problems, take action fast! Follow theså steps: â Contact your credit card company. Ask if they can lower yîur interest rate or set up a more affordable payment plan. â Set up a budgåt and rethink your spending. Be realistic about your what you can and cannît afford. â Get help from a local consumer credit counseling ñenter. Avoid credit groups that charge fees