Credit Cards 101 MSU: Essential Credit Card Knowledge for Students

Credit cards can be a great way for students to build credit and earn rewards, but it's essential to understand the basics before applying for a card.

Credit scores range from 300 to 850, with higher scores indicating better credit. A good credit score can help you qualify for lower interest rates and better loan terms.

To establish credit, you'll need to have a credit account and make regular payments on time. Late payments can negatively affect your credit score.

The average credit card interest rate is around 18%, but some cards offer 0% introductory APRs for new cardholders. This can be a great opportunity to save money on interest charges.

To get started with credit cards, you'll want to understand the benefits they offer. Building a good credit history is key to establishing a strong financial foundation.

A credit card can help you establish a credit history by making regular payments on time. This can lead to better loan terms and lower interest rates in the future.

Sign-up bonuses can also help you start an emergency fund or take a trip, making it a great incentive to apply for a credit card.

Applying for a credit card is a straightforward process that requires a few key items. You'll need proof of income, a valid ID, and consent for a credit check.

These items help lenders understand your financial situation and recommend the best card for you. Applying for a new credit card will also result in a hard inquiry on your credit report.

This might temporarily lower your credit score by 5-10 points. Applying for multiple credit cards at once or planning to finance a home or car can be a consideration.

Getting started with credit cards can be intimidating, but understanding the benefits can make all the difference. Debit cards may seem like a safe choice, but they don't help you establish a credit history.

Building credit is one of the key benefits of using a credit card. Establishing a good payment history can help you borrow money in the future at lower rates.

Sign-up bonuses can be a great way to get started with your credit card journey. The bonus could help you start an emergency fund or take a trip.

Rewards are another advantage of using a credit card. Rewards give you back some of the money you spend, which can be a nice surprise.

Having flexibility when making purchases is also a benefit of credit cards. A credit card allows you to pay for things over time, which helps when you have a major purchase to make or a financial emergency.

To play cards, you'll need a standard deck of 52 cards, which includes four suits: hearts, diamonds, clubs, and spades.

Each suit has 13 cards, numbered from one to 10, with three special cards: Jack, Queen, and King.

The Jack, Queen, and King are face cards, and they're not numbered.

The four suits are all equal in value, and there's no one suit that's better than the others.

The cards are shuffled to mix up their order, and then dealt out to players.

The player to the left of the dealer goes first, and they draw the top card from the deck.

Credit cards can offer a world of benefits and savings when used wisely. They provide increased purchasing power, allowing you to make larger purchases when needed.

Using a credit card the right way can actually help you build up your credit score – and a good credit score means you'll get better deals on loans down the road. This is because your payment history counts for 35% of your credit score.

Credit cards often include built-in safety features, making transactions safer than cash or debit cards. They also offer rewards like cash back, travel benefits, or discounts on purchases.

A good credit score is a three-digit number that indicates how risky it would be to lend you money. It's determined by your payment history, credit utilization, and other factors.

You can avoid most credit card costs with responsible use. This means paying off balances in full to avoid interest and leveraging rewards to your advantage.

Credit cards can come with costs, but you can avoid most of them with responsible use. They include interest payments, annual fees, late payment fees, balance transfer fees, and foreign transaction fees.

Low-interest cards are a great option for those who need to carry a balance, as they provide a lower interest rate, making it less expensive to do so.

You usually need good credit to qualify for these cards, which means having a solid credit history and a high credit score.

A 0% introductory APR period is often offered, giving you time to pay off a large purchase without interest, which can be a huge relief for those with big-ticket items.

This introductory period can last anywhere from 6-21 months, depending on the card issuer and the terms of the card.

Managing your credit card requires regular attention to avoid overspending and high interest rates.

Keep track of your credit limit, which is the maximum amount you can charge on your card, to avoid exceeding it and incurring fees.

Set up payment reminders to ensure you pay your bill on time, as late payments can result in penalties and damage to your credit score.

Regularly reviewing your statement can help you identify any suspicious transactions or errors that need to be addressed.

Managing your credit score is crucial when it comes to buying a car. Research has shown that there's a linkage between relationship status and personal credit scores.

Making smart decisions when buying a car involves considering costs beyond the purchase price. Tools and tips to consider before making a car purchase can help you make an informed decision.

If your down payment is below 20 percent when buying a car, you may need to add mortgage insurance to your costs. This can significantly increase your expenses.

Here are some key considerations to keep in mind:

A balance transfer can be a great way to simplify your financial life and save money on interest. You can move your debt from another issuer to a card with a lower interest rate.

Typically, balance transfer credit cards charge a fee, ranging from 3% to 5% of the amount of debt transferred. Some cards, like the Georgia United Credit Union Visa Credit Cards, offer no balance transfer fees.

To qualify for a balance transfer, you'll usually need good or excellent credit. This can be a significant advantage if you're trying to consolidate high-interest debt.

If you're considering a balance transfer, be aware that the fee can become expensive for larger balances. You can use an online calculator to see how much you could save with a balance transfer.

Late fees can't cost more than the minimum payment due, and some cards waive the fee when you transfer debt within a certain time frame.

There are several types of credit cards, each with its own unique features and benefits.

Rewards credit cards offer cash back, points, or travel miles for purchases made with the card.

Secured credit cards require a security deposit, which becomes the credit limit, and are designed for those with poor or no credit history.

Cash back credit cards give a percentage of the purchase amount back to the cardholder, with some offering higher rewards rates for specific categories like groceries or gas.

There are several types of credit cards to choose from, each with its own unique features and benefits.

Cashback credit cards offer a percentage of your purchase back as a reward, such as 1% to 5% cashback on all purchases.

Rewards credit cards offer points or miles that can be redeemed for travel, gift cards, or other rewards.

Secured credit cards require a security deposit, which becomes your credit limit, making them a good option for building credit.

Charge cards, like American Express, require you to pay the full balance each month to avoid interest charges.

Being a college student doesn't automatically qualify someone for a student credit card. The Credit Card Act of 2009 prohibits issuers from giving cards to people under 21 unless they have proof of income or a co-signer.

To build credit, you may need to consider a secured credit card. This type of card requires a security deposit, which becomes your credit limit.

Rewards credit cards can give you something back for each purchase you make.

Cash back cards give you money back, which can be redeemed as a check, deposited into a bank account, or used to reduce your balance.

Rewards cards are ideal for cardholders who pay their bill in full every month, as carrying a balance can eat away at the value of rewards.

There are different types of rewards cards, including cash back cards, airline credit cards, hotel credit cards, general travel cards, and store credit cards.

Here are some examples of rewards cards:

Airline and hotel credit cards often come with restrictions on how you can redeem your rewards, such as limited travel dates.

Credit cards can come with costs, but you can avoid most of them with responsible use. Interest payments can accrue if you don't pay your balance in full each month.

Annual fees can range from around $20 to hundreds of dollars, but may be worth paying if the card offers rewards and perks that make up for the cost.

The cost of late payment fees varies by issuer, but federal regulations limit them to $27 for a first-time late payment and $38 for a second late payment within six months.

If you have average or bad credit, you'll want to be careful about which credit cards you apply for. Credit card options for those with less-than-good credit are more limited.

Rewards are more scarce, and interest rates are higher, making it harder to make the most of your credit card. This is why it's essential to choose a card that won't charge an annual fee, or one that offers rewards with a fee.

For bad credit, a secured credit card is usually your best option. These cards require a security deposit that you get back after closing the account or upgrading to a regular, unsecured card.

Secured cards are less expensive in the long run than unsecured credit cards for bad credit, which tend to charge high fees that you never get back.

Carrying a credit card can come with significant costs, but being responsible with your use can help you avoid most of them. Credit cards can have different interest rates, or APRs, for purchases, cash advances, and balance transfers.

If you always pay your balance in full every month, you won't accrue interest on your purchases. Annual fees can range from $20 to hundreds of dollars, and in most cases, it's not worth paying just for the privilege of having the card.

Late payment fees can vary by issuer, but federal regulations limit how much they can be. As of 2018, first-time late fees were capped at $27, and fees for a second late payment within six months were limited to $38.

Some credit cards charge 3% to 5% of the amount of debt transferred as a balance transfer fee. Travel credit cards generally don't charge foreign transaction fees, and some issuers don't charge them on any of their cards, saving you 1% to 3% on transactions made with non-U.S. merchants.