Credit Card Tips for College Students

Entering college with a credit card in your wallet can make you exult. Most rich kids in your school have them, which is why it may be a moment of pride for you as well. Having a credit card is also a great tool in building your history. This can benefit you greatly once you step out of your student life.

You may have probably heard about a number of offers from various companies, which they claim to be the best deals ever. It is important that you can handle your card well to avoid falling into the credit trap that has the power to ruin your finances for a very long time.

Good Credit Matters

Once you get your card, you should not only use it for purchases, but to build good credit as well. Paying off debt is seriously difficult. The money you owe can multiply quickly before you know it. When things get out of hand, you will find it much harder to get out of debt. However, if you are able to establish good credit, this can open doors of opportunity. It can be your key to renting a nice apartment or even buying a home for yourself. You can also use it to attract lenders, so they will lend you money to buy a car.

Building and maintaining your credit can be simple if you are devoted to becoming a responsible card user. Here are some tips that you can use to make sure your credit rating remains safe at all times:

• Beware of “too good to be true” promotions. Freebies and fast approval make it seem that getting a student credit card is as easy as 1-2-3. Do not just sign up for a card, especially when you have one already. College students should not carry more than one card in their wallet unless they can afford the payment. Always think twice before you submit an application for a new card. Freebies are also great but if you are not a responsible cardholder, you may end up paying a lot more than the free stuff that you received. 
• Contemplate and do your homework before making the big decision. Credit cards are pretty little plastics that might make your friends envious. However, before you sign up for one, ask yourself whether you really need it. If you can pay for your purchases with cash or even a check, you probably do not require the plastic, especially if you have a debit card already. Nevertheless, a card can be helpful in times of emergencies and can be great for online purchases. This can also be good for your credit history. Again, if you cannot pay your bills in full and on time, you might want to skip the credit  block for now.

When looking for a student card, go for one that has no annual fee. Often, card issuers do not offer students good rates, especially if they are first time cardholders.  Instead, there will be higher APRs and low credit limit. You can save a lot more if you have a card that does not charge a fee annually.