Credit Card Companies often entice the College Students by offering low-ball freebies to apply for a Credit Card. As published in a leading newspaper, it may be funny to note that a college Student filled in the credit-card application form while she was offered a freebie of Sandwich! She didn’t actually know what the application was for, until she received the credit card after few days with a credit limit of couple of thousand dollars. To protect the Students from such financial risks, some College Authorities restrict marketing of Credit Cards in their campus.

Student Credit Card
Most of the Students’ Credit Cards are available with no annual fee and no requirement for a co-signer. It helps the Students to build a good credit history which would help them to secure loans with less hassle, in later part of their life.

Pre-paid Cards

Pre-paid Credit Cards are a great choice for Students as there is no worry for high Interest Rates or a credit check for availing the Card. Students can have a better control over the expenditure as they know it is their money or the one provided by their parents for monthly expenses.

Managing your Expenditures

Students should understand that although possessing a credit card in their hands may be a matter of pride, improper usage of the card will lead to financial risks. Students should always try to pay the Total Amount Due rather than the Minimum Amount Due else they will have to pay a large amount of money as Interest charges. They need to pay their bills few days earlier than the Due date as failure to do so will lead to late payment charges.

Parents: Educating your Children

Parents should play a vital role in educating their children on money management and spending skills. As a Parent, you need to teach your child about the real value of money in a human’s life. They need to be taught of how hard it is to earn money and managing the hard-earned money in the right way will make them to achieve their financial goals.

Parents should let their children know what are the complications involved in using a Credit Card. You could let them know about the impact on their credit history, mounting Interest rates if the Total Amount Due is not paid and the unnecessary late payment charges. If possible you could apply for an “Add-on Card” on your son/ daughter’s name which would help you to monitor his/her expenses and a better control over the budget. You could also be assured that your child is safe from financial risks and at the same time enjoys the freedom of using a prestigious Credit Card!

The extension of credit facilities to customers has been a very old strategy which was adopted for the sole purpose of increasing the ability of the buyer to purchase goods and services, thereby literally motivating the customer to spend more. When this process first started, only the big business houses used to issue credit to its customers. However over a period of time the banks stated to issue the credit cards and started managing all the processing of credit card payments by charging a nominal transaction fee and card users credit card interest rates.

After the banks started to issue credit cards and taking care of the processing of the payment, then came the introduction of the Payment processing companies such as the Visa Card and the MasterCard. So at that stage and even now we see the banks and credit card payment processing companies doing very well.

Then came the age of the internet, which due to its popularity was able to break the monopoly of both Visa and MasterCard. The facilitation of the internet in letting the small companies provide payment processing in an electronic way was able to bring down the processing fee drastically down. This has now led to many people opting for online payments which are quicker and more affordable.

More and more companies started providing quicker and more affordable services of credit processing. Now the 2 big giants who had monopoly had no other option than to reduce their credit card processing fee because they surely wanted to remain in the market and continue to earn.

The result of the processing fee reduction in the entire credit market actually was able to work as a good strategy to enable and increase in sales due to the fact that everyone had access to more money. This strategy was not limited to individuals alone; it also worked with small and large business houses.
 

We all would know that no one would accept a drop in the quality of payment processing just because the payment processing fee has been reduced. There is no point in getting lower processing rates and compromising with the quality of payment processing. In fact it is better to choose a company which would charge a higher rate and is the best in its quality of processing both the debit card and the credit card payment.