A credit card can be a handy tool to have around in the event of an emergency. It can also be a tool to help build your credit history for later in life when mortgages and other loans may be needed. If you are a student then the Discover Student Card might interest you, but it is by no means the only student credit card available. You have the choice in choosing a card that will work for you, whether it is for your college expenses or for an emergency.
What you need to know about any credit card is that the companies report to the credit bureaus at least four times a year. Some companies will report each month, while others report each quarter. When the company reports your account is in good standing, they also show the balance on the card and the credit limit. If you keep the card balance below 50 percent of the credit limit, this will help your credit history and in turn your credit score.
Since the Discover student card is an option for students it is important to know what this credit card can offer you. The Discover card provides you with 5 percent cashback bonus on travel, home improvements items, department store purchases, gas, groceries, restaurants, and many other purchases. For students you will find cash back rewards for text books and other school supplies you need each year. At various times of the year there are deals for 5 to 20 percent Cashback Bonus. These specials are often awarded for online shopping at Discover’s exclusive store. Other purchases not named in the Cashback Bonus program can offer one percent unlimited rewards.
The student credit card from Discover also provides 0 percent APR for the first six months on purchases. Any purchase you make in the first six months will not have the APR you have been awarded. If you pay that balance off before the six months are up, you will never pay interest on it. In addition to the purchase promotion rate there is no annual fee, even for students.
Some student credit cards will only award the card for an annual fee. When you look at the promotional rate and no annual fee you are already saving money. To top off the better features of the card is a $0 fraud liability guarantee, meaning any fraudulent charges are not liable by you.
Discover offers a minimum annual percentage rate of 14.99 percent on their Discover student credit card. This rate is variable and can change at any time. Discover is one of the credit cards that is not usually willing to lower their interest rate below the first APR ever offered. What this means is your card will never be below the 14.99 percent, but if it is raised for any reason, you may try to get it reduced back to the 14.99 percent. This will only happen if your credit card is in good standing.
With the new credit card laws in effect, you may be looking for a new credit card. Before you apply for a credit card you will need to access your three free credit reports. By accessing your free credit reports you can examine what your creditors are reporting about you and what an inquiry might find. We will list some of the information you can find on your credit report and how it can affect you and your credit history.
- Addresses: the places you have lived in the last few years are often listed on the credit report. If you have not moved in the last three years, you may only see your current address. It also depends on when the credit report has refreshed their data about your addresses. This information is used to see if a person moves around a lot or has a steady life at one address. It does help assess risk.
- Bank accounts: your bank accounts may be listed on the credit reports. At the very least the report will have what banking institutions have made inquiries in the last year regarding you.
- Inquiries are one of the last things on a credit report, and show companies whether you have had numerous inquiries over a certain period of time and what those inquiries were. It can show whether you have applied for credit cards from multiple companies over the last month or two.
- The largest section of the credit report will look at your lines of credit.
Each line of credit you have ever had will be displayed on the free credit report, unless you have something removed. The lines of credit can be mortgages, car loans, student loans, credit cards, and any other form of credit. Under each line of credit will be the date the account was opened, for how much, and whether the account was paid in full, closed, and closed by whom. It will also show any delinquencies you may have had. Along the bottom of the information per each line of credit will be days or months listed showing whether you were on time, late, or missed a payment. The three free credit reports display information a little differently, so you may also see written conclusions about the card and a reason for that line of credit to be considered negative.
If you see nothing negative it means the reports are all positive, which is where you would like your credit to be when you apply for credit cards. Bankruptcies will also be displayed on the free credit reports, along with any charged off debts you might have.
Free credit reports are your financial history spelled out in a neat little report for companies and you to access. When you obtain your credit report you will see everything as the credit card company sees it. From this information you can decipher if a credit card company might be willing to give you a credit card.
If your credit card reflects a poor history you know that there are limited credit cards you can apply for, such as bad credit credit cards. As a student you may have little to no credit which affects the type of card you can apply for. The main point about free credit reports is that it is a tool for companies to decide if you are worthy of a line of credit and the risk you pose.
For you it is a method to check your financial history to see if it melds with your own conclusions. Identity theft is an enormous problem in the United States. If you fear you have been a victim of identity theft or credit card theft, your credit report can show any lines of credit that may be in your name. From this you can tell if there is any invalid line of credit, such as one you never opened and dispute the issue. Identity theft often means accounts are opened and the perpetrator allows these accounts to become delinquent. By checking your free credit reports you can ensure nothing untoward has happened, and that you get it cleared up quickly if something has occurred.
Choosing between credit cards is an arduous task, and what can make things worse is getting the wrong card. Shopping for credit cards takes time, patience, and some skill. It also takes knowing what that card can offer you, like the Orchard Bank Classic Cards.
Orchard Bank provides the MasterCard logo, which is the second largest logo in the world. Secondly, they offer a credit card you can build your credit history with. Orchard Bank Classic Cards is a group of cards for you to choose from. Some of these cards will be secured credit cards and others are bad credit credit cards. Bad credit credit cards mean you have let your credit scores fall. You’ve been labeled a risk, but you also have a way to get your perfect scores back through one of the Orchard Bank Classic Cards.
With the account you have the ability to access your online information 24/7, along with receiving emails and test messages when you require them. The difference between Orchard Bank Classic Cards and most other credit cards is our number three advantage of the card. Orchard Bank will report monthly to the credit bureaus to help raise your bad credit as quickly as possible.
Orchard Bank also has a different process for awarding the credit cards. They have a card selection process you go through before the application process. In other words, they pre-qualify you for the Classic Cards you would be best suited for. You do not have to take any of the secured credit cards being offered, but they do help narrow down your choices. It takes sixty seconds to find out which credit cards you pre-qualify for without affecting your credit score.
Once you decide on the right card out of the Classic Cards you can fill out the application, chose a card design, and wait for the results. The application will affect your credit score, as any running of your credit will, but this is done only after the pre-selection to see what card or cards might be awarded to you.
Secured credit cards are better than cash or checks in at least 5 ways:
- You can shop online, and buy gas when the stations are closed
- You can reserve a hotel room or an airline ticket over the phone
- You have recourse if goods are defective or never delivered
- If your credit card is lost or stolen, you’re protected
- Secured Credit Cards will help you build your credit rating
We all know that shopping on line can often save both time and money. Finding a specific product via a Google search is much more efficient than telephoning every store in your town, or driving from store to store. And often, the price including shipping is less than you’d pay in person.
And, while some on line stores do accept electronic checks, you usually have to wait until your check clears before your merchandise will be shipped.
If you do much traveling at night, you know how convenient it is to pull into a station that’s closed and use your credit card to fill up. You can’t do that with cash or a check.
Next, reservations: Unless you secure your spot with a credit card, you take the chance of not having a room or a seat when you need it.
Safety is another issue. Whether you buy on line, over the phone, or from a catalog, there’s always a chance that the company isn’t on the up-and-up. When you’ve paid for your purchase with a credit card, the credit card issuer will back you in your complaint – and credit the purchase back to you.
As for loss… If your credit card is stolen your liability will never be more than $50 – and some cards offer zero liability. All you have to do is call and notify your credit card issuer.
If your cash is stolen – it is simply gone. And if your checkbook is stolen and the checks used, you’ll have to jump through hoops to prove that you didn’t write those checks.
Last but not least, a secured credit card will help you build or rebuild your credit scores.
Just as with any other card, your usage will be reported to the credit bureaus each month – slowly improving your credit scores with each month of responsible use.
Treat your secured credit card with respect, and you’ll be rewarded with higher credit scores. So…
- Never charge more than 30 – 50% of your available credit
- Always pay your bill on time
