Student Credit Card Tips
Credit is a contract between yourself and a financial company in which you promise to pay in the future for goods, services, or money received now. Forms of credit that are backed by collateral such as money or property you put up as a guarantee you will repay, are called secured. If you do not repay as you have agreed, the lender will be able to repossess (take) the collateral. Car loans and mortgages are just a few examples of secured loans. Most credit and student credit cards are unsecured, but there are some secured student credit cards available for those who cannot qualify for an unsecured student credit card.
Your credit history is basically your financial reputation. Lenders will use this information on how you have handled your financial obligations in the past when they are determining whether to approve or to deny a credit application. In addition to helping lenders and financial institutions determine if you will be a worthy credit risk, your credit report can be reviewed by any company or individual with a legitimate business need. For example, your credit report will be used to determine your eligibility for an apartment rental, employment, as well as insurance. You should go for the opportunity to control your future by understanding responsible money management and learning tips to help build and maintain a great credit history.
First, you need to keep track of how you are spending your money. Do you ever wonder where that money all goes anyway? Try to write down every expense for at least one month. Some of those totals just might surprise you. Coffee and pizza can really add up! Estimate expenses for all items that have not yet come up for the month so that you have a complete picture of your average monthly expenses such as tuition, rent, utilities, books, insurance, entertainment, membership dues, auto registration, etc. Next, you need to figure out your net monthly income from scholarships, part-time work, and financial support from family, all you can think of. Net income is the amount you have ended up with after deductions, such as taxes, are made.
Now you subtract your expenses from your income. If the result is a positive one, then you should consider setting up an emergency fund, paying off debt, and or saving toward a goal. However, if the result is a negative one, then your spending is exceeding your income, and you need to look at ways to either increase your income or trim some non-essential expenses such as the monthly addition of five new CD’s to the music collection. Some simple lifestyle changes can make a real big difference over the long term. Did you know a small daily expense of $3.00 for a snack adds up to a yearly expense of nearly $1100?
Student Credit Cards are a good thing. However, before you do obtain one. Learn something about yourself by thinking about the above tips. Thinking before you jump could just save you a broken arm or two.
Student credit cards.com @ September 8, 2008