Know How Your Credit Can Work For You!

Uncategorized, credit

So you think it is time for you to get a student credit card. There are some things you need to be aware of. Knowing you need to use your student credit card with caution is one thing.

Having a student credit card (or regular credit card) first of all is something that even some adults do not have. They may want them but they cannot obtain one. Why you ask. Because there credit history tells a credit card company, they may not be one to take a chance on.

Just starting out in college, hopefully your credit history is lacking but not showing poor. What is the difference? Lacking means, you really have not had any credit history. You have not applied for any cards or loans at this time in your life. Showing a poor credit history is very different in you have obtained credit and did not pay it back on time or maybe defaulted. So, as you can see your credit history is very, very important in obtaining the student credit card.

When you have obtained that student credit card, do not let your friends or even family use it. This is a very personal thing. It is only going to affect you and your credit history, not anyone else.

Student Credit Cards (or any credit card) are very good at trying to hook you in with gimmicks or give a ways. The last credit card I personally applied for gave me a free tee shirt. The sad thing is I did not even realize I was applying for a credit card. I just wanted the tee shirt. They use such terminology that you may not even know what you are signing up for.

This is not good. If you are giving someone, your social security number and personal information know what you are giving that information for. Once you have received that new student credit card be careful. Think about what you are doing when you go to use it. You have probably already received your financial aid and student loans to take care of most of the necessities, so use your credit card only when necessary.

Once you have made a purchase and you receive that first statement, do not just pay the minimum balance due. If you do that, you will be paying that card off for many years and paying a lot of interest. I know when you are first starting out; a credit card is something new and exciting. It may make you finally feel like an adult. Well, now would be a good time to act like one as well.

As I stated before, use your student credit card wisely. Only use it if you have to. Keeping it for emergency times is a very good plan. When you do use it, keep in mind you do have to pay it back. Using credit is so easy sometimes; you will actually pay more money for something you want. When you use cash, you tend to be a little more frugal with the money.

Good for you for wanting to be an independent person. Just remember, not using the credit properly will only make things very difficult for you and maybe your parents if they are the ones that will have to bail you out. Think of everyone your actions will have consequences on and do the right thing.

Student credit cards.com @ May 23, 2008