Student Credit Cards and Interest Rates

by : Elisa

For adults, understanding the primary and fundamental things of interest rates is very important before applying for any type of student credit cards. It is especially important for individuals, trying to get this category of credit card, to understand exactly what they may end up paying in the long run, so they are able to make decisions and choices better.

?Interest rates vary considerably depending on credit card offers, so it's advisable for students to read carefully the fine print first. Generally, the interest rate ranges from between around 8 per cent to as much as 30.25 per cent. Typically, most student credit cards begin with a low interest rate; sometimes it can be as low as 0%.

?Even though low introductory interest rates may seem to be attractive at first, immediately after the introductory period ends, which usually lasts about six months, the interest rate may increase suddenly to between 16 to 18 per cent. In some cases, a consistent interest rate may be a better choice for students.

?In general, the best student credit cards contain a normal interest rate of around 15 per cent, according to "The Truth about Credit - a public interest research groups in the United States". Students or their parents must select the card with interest rates at this level or lower; otherwise, the student will end up paying too much for their credit card privileges.

?Some alarming facts about student credit cards:

?It is one of the biggest problems with student that they do not realize how quickly debt can be accumulated and how difficult it can be to get rid of it. A credit calculator at? will become very useful, if a student want to learn that by paying a monthly payment of $25 minimum towards a $1000 with an 18 per cent interest rate. They would end up spending $1115.41 just on interest at the end of 153 months and that is how long it would take to pay off that balance if no other purchases were made on the card.