Oh, what a wonderful and scary time it can be to go to college! It's a big step to leave home and try to make it on your own. You have taken all the right classes to get ready for college and do well there. But to do well, you need to learn the right things outside of school. This means you need to know how to use your student credit cards.
Don't let your mind wander!
When you get to campus, one of the first things you'll notice is that there are people selling student credit cards everywhere. It does make sense. Credit card companies want to get to know their clients while they are still young. This relationship could lead to car loans and mortgages in the future, not to mention the finance fees that come from the spending habits of young Americans. Before you start this credit-eating spree, there are a few things you should think about.
Think about the fact that the average college student leaves school with just under $3,000 in credit card debt. Ten percent of all students graduate with more than $7,000 in credit card debt. This is a huge number. I know, I know, this is a number you hear all the time. It seems vague, so it's easy to tell yourself, "Well, I'm not like most students, so I won't fall for that." I like that. No, really, you have a great attitude. The hard part is to keep this in mind so you don't get sucked in by your newfound ability to spend.
Here are a few tips
Here are a few quick ways to stay on top of your finances:
- Pay Your Balance!!! This is the most important thing you can do to build good credit: keep your balance low and pay it off when it's time. If you do this now, future credit card offers will be much better.
- Don't have too many cards. Have you ever seen John Q. Consumer with 39 credit cards in his wallet? Absurd. Since you're just starting to build your credit history, you shouldn't need more than a couple of cards. Make wise choices.
- Look at several credit card offers. Don't take the first one you see. There are a lot of choices out there, and if you're patient, you'll find the right card for you. This could save you a lot of money and stress in the long run.
- Tell Your Parents: Yeah, yeah, it's the last thing a college student wants to hear. "Tell your parents," they said. Um, yeah, right. Well, you should still tell your parents about your credit cards, even though you are now an adult. They are a good place to go for both emergency financial help and, more importantly, advice about money.
"To wrap things up..."
Finding the right credit card for students can make a huge difference. The Citi Platinum Select for College Students and the Discover Student Clear Card are two of the most popular credit cards for college students. The Citi Platinum Select Card is a good choice for people who are getting their first card. It's a great way for students to build credit without having to worry about a minimum income or a co-signer. The Discover Student Clear Card is a good place to start for students who want a little bit more. The Clear Card has a lot of extras, like getting up to 5% cash back on some purchases. The APR on both cards is 0% for the first six months.
It's a good idea to get one or two student credit cards when you get to college, but it's a better idea to use them wisely. You'll find out quickly that the right card is a very useful tool for your shopping habits and building a good credit history. You shouldn't be afraid of having a credit card. Instead, you should know that it's a good way to start building a good financial future.
