Credit Cards for Students

Credit Cards for Students

As a student you live on a budget as best you can with tight finances, but are credit cards for students the best way to go? How do you apply for credit cards for students and how do they work?



There are some banks that offer credit cards for students. These cards do not have a huge credit limit on them as it is assumed that a student isn’t earning enough money or any at all to repay any debt.

The interest rates on these cards are quite high, but they are useful under the right circumstances.

Credit Card Advantages

When you make a purchase with your credit card you are more protected then with a debit card. If there is a problem with the purchase and the supplier won’t handle the situation you can claim a refund from your credit card provider.

Also having a credit card as a student means that you can start to build up a credit history which you may need in the future so that you can apply for loans.

Your credit history and score will depend on you repaying the balance each month and on time. As a student you need to be sensible and also know that this will impact your future finances.

What are Credit Cards for Students?

When you apply for a student credit card, lenders know that you will not have a credit score. Credit card providers will have specially designed credit cards for students so that you are able to build a credit history.

Credit cards for students will often have promotional bonuses and reward points. Also you will need to shop around so that you are able to get the best interest rate which can be high as you are considered a risk still.

Applying for a student credit card and being approved is far easier than for a normal credit card because of they will not need a lengthy credit history or any at all and also they do not need to you to have a certain income.

If you have little to no credit history, it might be better to look at a secured credit card. With this card you can still build a credit history which will help in the future.

Good Credit Card Habits

As a student this will most likely be your first credit card, so you should get into some good habits if you are going to have the responsibility of a credit card.

• Each month you are required to pay a minimum repayment, but rather try and pay the balance in full each month. This way you will not need to pay any interest.
• You need to avoid withdrawing from an ATM with your credit card as the fees attached to doing this are extremely high. Also cash withdrawals bring about a higher interest than purchases.

If you earn a steady income as a student then it might be wiser to apply for a standard card instead of a student card.

You will have more flexibility, lower interest and other perks that you may not see with a student credit card.

Credit cards for students can do more damage than good, because if you are unable to clear your balance each month you will not only have the interest but also late payment charges, charges for exceeding your limit and also if you use it overseas you will most likely be charged for this as well.

You need to ensure that you pay the full balance each month on your credit card for students so that you get a healthy credit score built and you are in control of the card, not the card in control of you.

SureSwipe in South Africa are merchant credit card providers, but they can offer great advice in various areas.

Credit Card Security Tips

Credit Card Security Tips

You are able to reduce the risk of fraud by taking some precautionary measures. These are credit card security tips that you can use on a daily basis’s to protect yourself.

SureSwipe in South Africa is a secure credit card merchant that allows your business to accept credit cards and your customers will feel safe in doing so.



Credit Card Security Tips

Security Online Tips

1. When you receive an email with attachments ensure that the attachments come from a trusted source. If you are sent a hoax or a suspicious email rather delete it from your mailbox.

2. You should have an anti-virus on your computer, so that your computer is constantly scanned to detect and remove viruses as well as spyware that can damage your computer, steal your personal details and documents.

3. If you are looking at downloading software especially when it is free, you will, you will need to ensure that the download source is a reputable one.

4. If you go online in a public space then you need be careful when you enter passwords and personal details as you cannot always be sure as to who is watching.

5. If you are using a shared computer, then you should always select no when the computer asks if it should remember the password for the next time that you visit.

6. A wireless connection should be secured and should only be accessed with a security code or a password.

7. If you access websites that require passwords regularly then you should use different passwords for each of these.

8. The passwords that you use should not be obvious ones like your date of birth. You should also never give your passwords, login details or user names to anyone.

9. Before you leave a computer, ensure that you have logged off.

10. Before you visit any other website, ensure you always log off from online banking.

Credit Card Security Tips whilst Shopping Online

1. When you are shopping online, you should not send your credit card details to retailers via email.

2. Your PIN should never be disclosed at any time when you are shopping online or by phone

3. When shopping online, you need to use reputable businesses so that if there are any problems then can be sorted with ease.

4. Confirmation emails and receipts should be printed and kept.

5. In the bottom corner of the site that you are using to make a purchase from, have a look if there is a padlock icon. This shows that the site is secure.

Credit Card Security Tips at Home

1. All confidential letters, account statements and receipts should be shredded.

2. Before you go on holiday, it is a good idea to inform your credit card providers of your traveling plans. This is so that they can verify the transactions that you are making whilst on holiday and not have your credit card blocked.

3. When you get a new credit card, it is important to sign it immediately

4. Your old credit cards should be destroyed by cutting through the chip and the magnetic strip.

5. You need to memorise your PIN.

6. There are retailers that will need your credit card number, expiry date and CVC number, but they will never ask for your PIN, so make sure you are dealing with a reputable business.

7. When you are selecting your PIN, you should choose a number that is easy to remember but is also not obvious.

8. The credit card cheques should be kept in a safe place, separate from your credit card.

9. If your credit card is slow at being delivered, then you can report it to the credit card provider.

10. If your monthly account statements are slow or if you receive your statement but it appears to be tampered with, then you need to report this to your credit card provider immediately.

11. Have a look at all your account statements for any transactions that you do not recognise. Also check online regularly.

These are simple credit card security tips that you can employ so that you can keep your credit card safe and avoid being a victim of credit card fraud.

Get a Credit Card with Bad Credit

Get a Credit Card with Bad Credit

The fact is that you need to get a credit card in order to rebuild your credit, but how are you able to get a credit card when you already have bad credit.

You are able to get a credit card with bad credit though, as there are many lenders who will want your business.


Also as a merchant you will need to improve your own credit score so that you are able to gain the services of SureSwipe for instance.

So how do you get a credit card with bad credit?

Options to Get a Credit Card with Bad Credit

There are fewer options available to you then if you had a good credit score. Even so, you should still shop around. There are credit cards that will carry high fees or interest rates. You will need to find the best possible card for the situation that you are in.
You will first need to check your credit reports and your credit score. You will most likely already have an idea of how bad your credit is but you will not know the extent until you check.

Once you have checked it, you are able to see the factors that are affecting your score and what strategies you can out into place so that you can get your credit score back on track.

It is also an idea to check your credit reports with all three of the major credit reporting agencies so that you can know what it is that is being reported and that the information is accurate.

It can be difficult to say what exactly constitutes a bad credit as there are many different credit scores available to lenders and each lender will decide for them what credit scores are acceptable.

A Credit Score 500 or Below

If you have a credit score that is below 500 then qualifying for a traditional card will be next to impossible.

To get a credit card with bad credit, a score of 500 or below will pose as a very high credit risk to lenders.

You are able to consider a secured credit card. This is where a security deposit is required as collateral which is usually equal to that of the credit limit of the card. A security deposit offsets the risk for the lender as it serves as a guarantee in the unlikely event that you will default on the card.

A secured security cards differ so you will still need to shop around. You will need to do your research and look at the features that are offered. Also not of the secured cards will report your payment history to the credit bureaus. If you want to rebuild your credit history then you need to ensure that the card will report the payments.

A Credit Score of 550

You will still have difficulty is getting a traditional credit card if your credit score is around 550. It will still be considered as a high risk to lenders and a secured credit card will be the best option.

A Credit Score of 600

If you are sitting at a credit score that is 600 you could still qualify for a traditional unsecured credit card with some lenders.

In saying this you will still have a few problems because you are still considered a high risk. The cards that you will qualify for will then most likely have high interest rates and fees.

A Credit Score of 650

If you have a credit score of 650 you are able to qualify for a traditional credit card more easily. A score of 650 still falls in the realm of a poor credit, so you can still expect interest rates that are high as well as higher fees until such time as your  credit improves with you payment history.

Once your credit improves and you break into the 700 range you will be able to take advantage of the benefits that credit cards offer.

The Future

You will want to keep your balances low when you have these cards and top pay the bill on time each month.

As long as you keep these two factors strong then you will see an improvement in your credit score and after a year or so you can think about applying for an unsecured card that will have better perks and fewer fees.

There are ways that you are able to get a credit card with bad credit which will help you to improve your credit score.

Advantages and Disadvantages of Credit Card Transaction Processing

Advantages and Disadvantages of Credit Card Transaction Processing

Credit card transaction processing has its advantages and its disadvantages but they are crucial for a merchant as they are globally accepted.

SureSwipe is a credit card transaction processing machine provider within South Africa. They offer the machines that your business needs to take and accept credit cards.

As a business it can be a huge disadvantage to not take credit cards as your competitors may.

However credit card transaction processing has advantages and disadvantages to them.

Advantages

• If you decide to accept credit cards then you have opened your business to many people who own and prefer to pay with credit cards.
• If you are a merchant in a tourist hot spot you can increase sales by taking credit cards as they can be processed from anywhere in the world. This is then convenient for travellers as they can pay instantly instead of converting currency.
• Impulse buys feature more as well as customers spending more when they are able to pay using a credit card.

 

Disadvantages

• When a credit card is used the issuer and the payment network get an interchange fee, which is a cut of the sales.
• A chargeback is a complaint by a customer to their credit card issuer and happens when they are not satisfied with the product or service. All credit card transactions are subject to this and can happen six months after the purchase. The merchant will need to prove the purchase was legitimate.

If you are thinking about credit card transaction processing machines for your business there are some things that you will need to take into account.

Think About

The interchange fees charged by credit card payment networks can be quite high but retailers see the pros of accepting credit cards and have to accept the fees so that they are able to business.

This fee also pays for maintenance of the network and credit card promotions that are on offer like that of reward programs and discounts.

At first being able to accept credit cards will cost your business and you will need to spend extra time in processing transactions. You will need to open a merchant account which may need a deposit and you will also need to get the equipment to accept them.

If you experience a high sales volume each month then the interchange fee can be negotiated.

As a business you can accept credit cards and also if a customer pays in cash you could consider a discount. If a customer pays with a credit card though a penalty should not be imposed on them.

You need to look at various credit card transaction processing merchants so that you can compare their offerings and fees.

Accepting cards will most likely increase sales as it is more convenient for many to pay this way.