Best Credit Card Tips for College Students
College Students require great Credit card tips to enable them to use their Credit card well and stay out of debt upon graduation. According to Sallie Mae, most college students have more than 4 credit cards having a combined balance of more than $3,000. Some go as far as having over $7,000 credit debt.
However, graduating with all these Credit debts could hamper their plans of entering the world and living a life after school. It can be dangerous is they missed out the payments or in any way defaulted.
Credit Card Tips –Why Good Credit is good
All your Credit card use is compiled into a credit report which is later graded with a Credit Score. Your Credit card score is always needed by your employers, insurance companies, Landlords and utility service providers. Its’ used to decide whether to approve your applications or not. If at all they’ll accept, the cost of accepting you depends more on the Credit Score.
Having lots of missing payments will decrease your Credit score. This alone can stop you from getting alone or apartment. Before an employer can hire you or you can get a service of a utility company and security offers.
Therefore, Good credit history is very important mostly when you’re starting something new on your own. So, having a good credit history depends more on how you use your credit card in your college days. I strongly believe that you’ll find this Credit card tips useful in building a good credit history as a college student.
College Credit Card Tips for Students
Don’t Choose a Credit card because of the Benefits only: You shouldn’t let your credit card to choose instead of the other way round. Students shouldn’t sign up for a Credit card because of the sign-up bonuses and other initial good deal.
Before you sign up for a credit card, ensure to read the terms and conditions and agreement of the credit card. Also, Consider the fees and rates they offer in comparison with another card. The Best type of Credit card for college students shouldn’t have an annual fee. It should have a low interest rate and a low credit limit.
Don’t use More than One Credit Card
Don’t be lured into applying for several credit cards as a student. Ensure to keep your credit card at a minimum. Each you apply for a credit, your Credit Score drops. And also, the more the credit card you have, the greater the chances of having high Credit card debt.
Don’t charge what you can’t afford: If you assume that Credit card is for charging things you can’t afford, you’re wrong. If you use it for things you can’t afford later, you run a risk of building a balance you can’t pay in future.
Make complete balance or full balance every month: if you form the habit of paying your balance soon you get your bill you’ll probably get out of Credit card debt. In that way, you’ll only pay for what you consumed.
Avoid Cash Advance
Taking Cash advance will attract 2 to 4% cash advance fee. It includes charges on the cash advance and at a higher rate. Purchasing a cash advance will increase your monthly payment.
Stay Within your Credit Limit
Going over your Credit limit is very expensive and hard to get rid of. This is because billing cycles and payment dates fall in a way that’s not regular. It’s advisable you keep your charges within 10-30% of your Credit limit.
Don’t allow your Friends to use your Credit Card:
If you allow your friends to use your credit, you’ll be responsible for paying off the bills. This is because it’s your signature that’s on the credit card application.
Do not be afraid to close the Card
Closing your credit card may damage your credit score, but don’t be afraid to close it if you don’t have money to pay off your credit card balance. It’s better to close it than to ruin your credit score the more.
Don’t think that your Parents will bail you out
If you’re not able to pay your credit card balances as a student, once you’re independent, you’re solely responsible for your credit card. Since your parents have their own bills to pay for and other retirement plans, don’t expect them to pay for your Credit card mistakes.