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Student credit card
survey -- the latest findings
By Laura
A. Bruce • Bankrate.com
 Students
and their families looking for the best deals on credit cards can
save money by focusing on annual fees and interest rates. But you
don't need to spend time shopping around -- the annual Bankrate.com
student credit
card survey has done the legwork for you.
For kids who swear they'll pay their bills on
time, USAA
Savings Bank offers the best deal. The card's 13.4 percent APR
applies to cash advances and purchases, and there's no annual fee.
The grace period -- the time before you get hit with interest payments
-- is 25 days from the billing date. The USAA Savings Bank card
is best whether you carry a balance or pay off the entire bill each
month.
The price of carrying
a balance
On the other end of the spectrum, the Bankrate.com survey found
the GTE Visa and the Phillips 66 Rebate
card will take a chunk of change out of your pocket if you plan
to carry a balance. There's a whopping 21.4 percent APR on purchases
and cash advances. The grace period is 25 days and there's no annual
fee.
If you'd like to compare your card to the averages,
our survey says the average student credit card has a 17.66 percent
APR for purchases and 19.67 percent for cash advances. The average
annual fee is $2, mainly because just three institutions charge
an annual fee. Two of the three will waive the fee under certain
conditions, so be sure to ask questions. The average fee for late
payments and for exceeding the credit limit is $24. The average
fee for cash advances is 2.56 percent, but not less than $2.98 per
advance.
Regular cards might
be better
Students who previously were employed and have a work and credit
history of their own may be wise to shop for a regular credit card.
On average, the deals are better: In the week of Aug. 3, our survey
found the national average for a variable rate credit card for students
was 17.66 percent. It was slightly better for a regular card --
17.45 percent.
For a regular credit card, use the Bankrate.com
credit card search
engine to begin looking for your best deal.
To keep costs to a minimum:
- Make all payments on time to avoid late fees.
- Don't exceed the credit limit.
- Avoid cash advances -- there's no grace period,
so you'll pay interest from the date of the advance.
If you'd
like to make a comment on this story,
e-mail bankrate editors.
-- Posted: Aug. 15, 2000
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