Credit Cards for Students by MyReviewsNow - By: chickie99

About First Progress
First Progress offers secured Platinum MasterCard credit cards for students to establish credit with major credit bureaus. The student’s payment history will be reported to the major credit bureaus: Experian, Equifax and TransUnion. A security deposit will be required as collateral for most credit cards for students. If the student closes out the account in good standing, the security deposit will be returned in full.

First Progress credit cards for students are issued solely based upon the security deposit rather than the credit score. Every month that First Progress reports to the three major credit bureaus, the closer the student comes to securing an unsecured credit card. Typically, students that pay their bills on time for 12 months will be able to obtain an unsecured credit card after the year has elapsed. The card provides the same protection and convenience of the MasterCard system. Students may rent vehicles, reserve trips and return items under MasterCard terms.

How the Program Works
A credit limit is established based upon the amount of deposit the student can place on the card. The deposit is typically $300. The deposit will be held in a non-interest bearing account with other customers’ deposits. The deposits are secured by the Federal Deposit Insurance Corporation (FDIC).

The student’s available credit will be calculated by subtracting the outstanding balance from the pre-determined credit limit. An annual fee of $39 dollars may be imposed when the card is opened. If the company awards an initial credit limit of $300, the company will deduct the annual fee of $39 and the initial credit available with be $261. The payment hold may take up to 10 days after the $39 annual fee is assessed each year.

On June 7, 2011, the Annual Percentage Rate (APR) was established at 14.99% for purchases. For cash advances, the APR was established at 19.99%. The prime rate is the primary reason for the APR fluctuation. Every billing cycle, students will be charged a minimum of $1.50 in interest. If the student obtains a cash advance, a $10 fee is assessed or 3% of the total cash advance amount. Any foreign transaction fees will be 3% of the total transaction amount.

How First Progress Helps Students with Little or No Credit
Secured credit cards are traditionally made available for people that are rebuilding their credit or people that have little or no credit. Students benefit from these types of credit cards, because they have no credit history to prove to banks that they are responsible. This card allows students to establish credit history with a bank with little or no risk to the bank. The deposit protects the banks from defaults.

If the student defaults on the credit card, he or she will not have their deposit returned. Additionally, the student’s credit score will be affected, and their interest rates will be increased. For example, the interest rate may begin at 14.99%, but the rate may be increased to above 20% if the student makes their payments late. This teaches the student responsibility.

These credit cards for students are discreet. The only designation on the card is the MasterCard logo. The secured status of the card is not present on the card. This allows the student to use the card without allowing every merchant and friend to know that the card is secured by a deposit. Credit cards for students have special safeguards to prevent students from getting into too much financial trouble.

Students with little or no credit should consider First Progress as an option. The interest rates are not exorbitantly high, and the terms are average. First Progress credit cards for students allow students time to build their credit. Review First Progress website for details about credit cards for students.

For further information regarding credit cards for students, please visit MyReviewsNow.net Shop At Home.

About the Author

Visit MyReviewsNow.net Shop At Home!

Article Directory Source: http://www.articlerich.com/profile/chickie99/156927

Additional Articles From - Home | Finance | Credit cards