How Are You Building Your Credit?
College student credit cards can help college students build their credit history while earning reward points that can be used at places where college students may shop. Many college student credit cards will also have 0% introductory interest rates, rewards and cash back.
This is the main gimmick credit card companies will hook you with. None the less, it is true. A college student credit card will help you build your credit history and can earn reward points as well as have a 0% introductory interest rate offer. What you need to do is explore all the many different college student credit cards and see what offers best fit your needs and life style. It is pretty typical for them to offer 0% introductory interest rate but what you need to find out is what the interest rate will jump to once the 6 months is up. The answer to this could be a deal breaker.
Each state has a standard of credit card interest rate minimum and maximums. Check out what your state maximum is and do not let anyone charge you more. Some times just mentioning a law will get you what you need. Compare your offers, apples to apples and chose what will best fit you.
Once you have received your college student credit card treat it right. Use it as an emergency tool and pay your bills on time each and every month. This is how you will start to build and maintain a good credit history. It is not the act itself in obtaining it; it is what you do with it once you have received it. Did you know charging it up to the maximum limit will actually lower your credit score not help it. It says to the credit card companies you do not know how to handle credit if you charge it up. That is why I say using your college student credit card as an emergency tool is the way to go. Not charging more the 40% of your maximum balance is a good stopping point as well.
Paying your bill every month on time is the other very important thing you have to do in order to build your credit. You can not most of the time pay it on time; you have to pay it on time every time. Further more, you need to pay the balance off as much as possible. If you are using the 40% rule this should not be an issue most of the time. A true emergency is your car breaking down or supplies for school that you must have now. Be responsible and use your credit card correctly and it will work for you.
You will know your college student credit card is working for you when you are building a good solid credit history that will enhance your financial freedom for the future. This is a practice you will have to maintain for here on out. The battle for good credit will not ease up on you or anyone else.
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Student credit cards.com @ December 29, 2008