Tips on Choosing the Right College Credit Card

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Tips on Choosing the Right College Credit Card

While credit cards are a sure way to build good credit, college credit cards must be used wisely or the student’s financial future could be ruined. At the present time it is easier than it has ever been to get a college credit card. It is easy for any card holder to over extend themselves when it comes to the use of credit cards. It is worse for those who have had little or no experience handling their own finances or credit. It is so easy for a student who holds a college credit card to give in to impulse buying, and many have no concrete plan on how they will pay the card payments.
The first thing to consider when opening a college credit card account is to get one with a low balance and use it only when it is absolutely necessary. You should be able to pay the balance off every month. This will go a long way in establishing a good credit score, something you will need the rest of your life.
Many of the college credit cards have an interest rate of 18 percent or higher. If it isn’t paid off within the grace period, this can really add a substantial charge to their bill. Look for the lowest interest on a college credit card that you can find. You also want to make sure there are not huge fees to pay just to hold the card. Read the disclosure that comes with the application carefully, especially the fine print.
It is wise that a student open a checking account first and see how they fare keeping it balanced. They should also take a course in finance if they have not had much experience in this area. The more they know about how the credit system works, the better they will be able to handle owning a credit card.
When paying the monthly college student credit card bill, a student may want to only pay the minimum amount required. This is a huge mistake as the interest alone can run several hundred dollars a year. Always pay more than the minimum on the statement, and do not spend over your limit or you will incur fees for that.
The student credit card is a great tool to help build a good credit rating. It should be used wisely, such as in an emergency or when it is used for a one time purchase, and not when you see a hat you can’t live without, or a scarf that goes with your new dress.

Student credit cards.com @ May 23, 2008