The love of student credit cards
Student credit cards also come with high default rates that rocket up to 25 to 31 percent if you break any of the terms of your credit card, including something as slight as paying your bill a day late. This change in interest rate is retroactive, meaning that even if you bought something when your interest rate was 0 percent, you will have to pay 13 percent (or 20 percent, or 31 percent) on it until your balance is paid off. If you let your interest compound, you can wind up paying two or three times as much as the original sticker price. The key is to choose a card with the lowest possible regular interest rate, then spend as though you were already paying that rate on your purchases. To find a credit card's real interest rate, look for the fine print or for a chart that illustrates the rates.