Student credit cards provide aid to students who want to finish school and earn a degree. This aid is further enhanced when credit card companies started to offer student credit card balance transfers. Credit card companies’ interest rates vary. Some interest rates are just too much for a student to bear while some are not so high and offer balance transfers. If a student is trying to save up, he will think about the offer. Generally, student credit cards are high-interest cards. This is because students have no credit histories especially those are who are newcomers to the credit card realm. Students, who have tried their hands on credit, most of the time, have bad credit records.
Students find difficulty in paying their monthly credit card bills partly because of the interest. Their predicaments would make them look for ways to alleviate their credit problems, so much so that they accept offers like credit card balance transfers. Students enjoy a 0% interest rate on accounts they transferred. For some credit card companies, the 0% interest rates last from 9 to 12 months after the transfer. After that period, interest rates are back to normal. This scheme would help students save the money on interest payments and perhaps can use their savings for their other needs.
The great thing about these balance transfer for student credit cards is that students can utilize this feature for their loans and other installment obligations. In short, credit card balance transfers offered by card companies do not recognize card accounts only. Usually transfer transactions carry a service fee. Just like any other transfer transactions, the fee is based on the amount of transferred balance usually in percentages. This means that if a student intends to transfer a handsome amount of balance, he is to pay a handsome service fee as well. Some credit card companies set their transfer fees in fix amounts usually according to brackets set by the company. This means that for every range of obligation transferred, a student must pay a corresponding transaction fee. This way, rates do not increase as the credit card balance transferred increases as long as it is within the range.
As mentioned above, it is not only cards whose balances can be transferred. It includes loans and installments as well, but sadly, not all obligations can be transferred especially when a student has several balances to be transferred to a card with low interest feature. Only small portions of the obligations might be accepted. Students, no matter how busy they are, must take time to read the rules and regulations that cover their cards to be able to maximize the benefits derived from their cards.