First Time Credit
Credit card companies love students! Most of you college guys have no credit rating so you may have to pay a high interest rate until you prove yourselves. Many college students will fall into the credit trap and buy more than they can afford. Either their parents will bail them out or they will spend years paying off a debt that gets larger and larger as the interest charges and late fees build up.
When you buy your clothes, gear, and tunes why not choose to reward yourself? Save with low interest rates, get great cardmember benefits, and establish your credit history at the same time.
Credit Card Benefits
Having a student credit card is a great convenience. You don't have to carry cash and you need a credit card to buy things on-line. Just be sure you use credit responsibly. Don't buy more than you can afford. What if your car is your only means of transportation and it breaks down. If you don't have the money a credit card will help to get you going again. Use your credit card for emergencies, don't max it out buying DVD's and clothing! Buying bender
Your in College, Do the Math!
It looks great on paper when someone tells you that you can purchase a new computer for only $25.00 a month. Stop and read the fine print. The computer will be out of date in 2 years and you may have 3 years left to pay on it! How much are you actually paying towards the computer and how much of the money is interest charges? You're in college, use your brain here! If you can't save any money then you probably don't have any extra money to be making credit card payments with.
A Good Credit Rating
Apply for a card and use it for emergencies. When you make a large purchase, pay it off before you buy something else. One very important thing you want to do with this credit card is to establish a good credit rating. The better your credit rating is the lower the interest rate you have to pay will be. That saves you money. Insurance companies check your credit rating and charge higher rates to people with poor credit. Many employers are now checking credit ratings before they hire people. A poor credit rating may mean you don't get the job you want. The one thing you do not want to do is buy impulse items and fall into the great American debt trap! At least wait until you are out of school and can qualify for a low rate card before you go on a credit bender.. Keep the Credit Creep off your back!
Late Payments
If you make a payment late the credit card company can raise your interest rate! They will also charge a late fee. Make sure you read all terms, conditions and disclosures on the credit card issuers site and know what your responsibilities are. If you get behind on your payments and end up with a bad credit record it can take you years to recover. Negative items can remain on your credit report for 7 years!
Credit Card Scams
Watch out for credit card scammers! Never give your personal information out over the telephone to someone that calls you. They may use this information to apply for credit in your name. There are companies that target students and others who do not have a good credit rating. If it sounds too good to be true, it is probably a scam. Do a quick search for "credit card scams" on the Internet. You may be surprised how many you find.
Free Credit Report
If you are denied credit because of information supplied by a credit bureau, federal law requires the creditor to give you the name, address and telephone number of the bureau that supplied the information. Contact that bureau within 60 days of the denial and request that they send you a free copy of your credit report.
Think Before You Spend
Find out exactly where all your money goes and work out a budget before you start charging things you can do without. That item you want to buy will still be there tomorrow. Don't use credit to buy now just because an item is on sale. You may pay more in interest than you saved with your sale discount. Except for Bill Gates, we all want more than we can afford. When the bills start coming in and you can't pay them it just isn't worth it. Think it through before you make a large purchase. That extra monthly payment may mean you can't go out with your friends on Saturday night. Don't go on a spender bender or you could wind up trapped like this poor sap.
