Unsecured, Secured credit card???

[gredodenda]

I'm a college student and I'm planning to apply for a credit card, but I'm not sure which one to apply for, unsecured or secured? Problem is that I do not what that means.

What is unsecured card? secured card??
What is transfer balance?

Is Capital One credit card any good?
I'm thinking about get it from Capital One and they now have no APR until May 2001. What is difference between College card vs normal credit card? Since I'm a student it's better off with college card?
Does Capital One have 2% rebates?

Which card is the most famous credit card for college students??

Many Thanks for all your inputs

 

[vi edit]

Unsecured usually means that you'll pay out the butthole in interest rates. You usually achieve "unsecured" status if you have bad/no credit history, or if you have a relatively low income.

College cards usually mean that you only have a credit limit of $500 or so...

 

[Yeeny]

A secure card is one you have to have the amount of the credit limit in the bank, and an unsecure card you don't.

 

[vi edit]

or...I could be wrong on the unsecured thing

that's just how it's been described to me in the past

 

[DanC]

Nope - wrong.

"unsecured" means you are a higher credit risk. That's the step to building credit.
Use it, pay it IMMEDIATELY! - and watch it grow.

I turn down $10,000 platinum cards on a weekly basis. It just takes time.
By all means - Fulfill your obligations!

But - if offered "unsecured" - that's the better way to build.

 

[vi edit]

Ok, so maybe I was sort of right

 

[Yeeny]

That is why you have to have money in the bank for a secure card, because you are a bad credit risk. But you really should watch out for them, alot of them are scams that will take your money, and then add hundreds in fees to your card before you ever even use it. If you do decide to go with one, then go with a major bank card. Good luck!

 

[kranky]

GF had it. "Secured" means the amount of your credit line is secured by a deposit in the bank that issues the card. People with bad credit/no credit sometimes must settle for this type of card. To look at it another way, you give the bank some money, and they give you a credit card with that amount of money as a credit line. Then, they lend you your own money back. Your credit line can be from 50% to 100% of your deposit.

"Unsecured" means you don't have to put money in their bank to get the card.

But don't pay a lot of fees to get a secured card. This is a frequent scam.

 

[Soybomb]

listen to kranky and gf, they know what they're tlaking about
just dont carry a balance whatever you do! you dont want to go through college with credit card debt!

 

[kranky]

And listen to soybomb when he says "don't carry a balance".

I missed your other questions before...
The bank is offering no APR until May 2001 because they hope you run up a big balance and can't pay it off when they start charging you interest. And even if they tell you today the regular interest rate is low, they can raise it at any time.

I doubt that Capitol One has any rebate at all.

A good exercise would be to ask the bank to send you a copy of their terms and conditions before you apply for the card, then read it over and ask them to explain anything you don't understand.

 

[DanC]

ahhh. yeah.

Use the card... pay the balance immediately. Credit companies will kill themselves to offer you credit when YOU DON'T NEED IT!

They'll blow you off when you do. Trick is ... to convince them you don't need their money.

Don't carry a balance, don't pay annual fees. (I call them and tell them I'm cancelling their card when I get that "annual fee crap&quot

Go on about your life. Credit is a game, not a right, not a privilege. Play the game. - and you will prosper.

 

[kduncan5]

I have an unsecured card. That means I don't have to deposit any money in their bank. My card also has no annual fee. That means I don't have to pay them, once a year, for the priviledge of using their card. Whether the APR (Annual Percentage Rate) is any better with a secured card, is a matter for debate (some other time).

The very best thing you can do for yourself is NOT, I repeat NOT spend beyond your means. As long as you pay the balance off each month, the APR doesn't matter one whit!

If you run up a big balance and pay the minimum monthly charge each month, be prepared to either pay on a never decreasing balance forever, or default on the credit card and lose your good credit history for 7 years.

Owning a credit card is something you really should NOT take lightly, because it CAN screw up your life more than you can imagine if not handled with care.

Capital One, like Providian, is a card for people who have no credit history or questionable credit history.

Balance Transfer means transferring a large credit card balance (from a different card) to a new card which has a very low introductory APR. That means you'll pay less in interest charges so you'll have a better chance of paying off the balance.

Citibank has a Student Card. Citibank is one of the most reputable credit card companies on the market. Just type citibank.com in a good search engine.

Rebates are gimmicks to get you to use their card. Be wary.

Hope this helps. -kd5-

 

[szymcom]

Usually the college cards with rebates (such as Associates), only pay you cash back when you carry a balance. It's not worth it...

I think the only card where you get real cash back is Discover, but I'm not sure (any Discover card holders can verify?)

Szymon

 

[CJM]

yeah, i got cash back from them. a whole 1 time. i think it was about $5 during last christmas. I'm sure there is some sort of system for how it works but i have no clue what it is.

 

[gredodenda]

Thank you so much for all of your help. This place ROCKS!!!