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Credit Card Applications » News » Other » Student Credit Card Advice

Student Credit Card Advice

September 01, 2008
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Student Credit Card at the Final Year - Should You Close It?

It's estimated 91% of students keep at least one credit card account open by their final year. Irrespective of what payment history they have built by the time, positive or negative, all of them wonder if they should close the card once they graduate. It is logical you change one product for another that is better fit for your new spending capacities and lifestyle. But closing your student's account is a double-edged sword, as claimed by financial experts. It might also be a hassle to get a new plastic if you carry big balances, let alone damage to your creditability as an adult.

If you're close to the final year with still a student plastic in your pocket, learn how you can dispose of it to keep your payment records in good standing.

It's not a secret that student cards tend to charge higher APRs and lower credit limits. Quite a fine deal for a young person to teach him/her responsible money management. But once a student graduates and gets that well-paid, prestige job, the array of lowest rates, no fees and rewards offers, online and offline, become a great temptation. Financial advisors do encourage you to apply for an "adult" card, but not until you make sure you leave the old account open.

The status of the payment records with this particular student card is not really that significant. The key is to keep the credit history growing. Once you close the account down, your credit rating might get a hit. Surprised at how the closed account might affect you as an adult? Remember, the credit records you graduate with are the major financial information your future employers, landlord and other lenders will look at making their decisions.

Of course, the best strategy is to graduate with positive payment records. You do not need to take that excessive debt into an adult life where you'll have to deal with car lenders and mortgage companies. If you have bad debts, the fact of an open account will not help. So, it makes sense to focus on all of your still due bills and pay them off before you leave college behind.

With some issuers, paying on time is not only easy but beneficial. Some cards of Chase Bank maintain a program to help students avoid getting stuck in debts. Its "karmic" points reward students for paying on time and can be redeemed for t-shirts and other items at a required amount.

If, in your final year, you still carry some balances which accumulated due to making only the minimum monthly payments, you are at a great advantage to get a graduation upgrade. The upgrade is usually realized through a balance transfer, an option to move your remaining balances onto a new and better credit offer. Again, there's no point in closing the old account. Even if you find a more appropriate deal and get approved, just leave the student card open to keep the history.

A balance transfer is a student's quick and smooth way into the market of lowest interest rates, best fees and paying rewards. The last year is not only the time to take the finals on core subjects but also on credit card management practiced all this time.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
  • John Stifler
    I think almost all people that familiar with internet, will hardly fall to these scams, but for now, I think people that use computer but don't familiar with internet things, and they has a phone line at their home, they should be warned more than internet users. I think senior people usually got scammed by these kind of "tech support" scams. Found so many reports about them since years ago at complain board sites like http://callercenter.com. We as younger, and know more about this stuff, should help and share information to they who needed it, especially older people.
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