In this age of technology, it's easy to just pull out your credit card, swipe it, and leave. In fact, college students in the United States grow up with credit cards. If you think back just a few years, you might remember that many places weren't too good with credit cards. In fact, you could walk into almost any fast food place and they wouldn't take a credit card at all!
Credit cards are great for people who don't like to carry cash and for people who are always on the go. You may already know that a credit card company can't hold you responsible for anything you didn't spend that costs more than $50. Some people are always put at ease by this.
Students like to spend a lot of money in the world we live in now. Anything from silly things like party supplies to things they have to have, like books for college. Most college students don't think about their future, the fees that come with credit cards, or how hurting their credit score can hurt them a lot in the long run.
Even though it's fine to buy everything with a credit card, college students need to think about their future. 99 percent of all students who graduate will have some kind of school-related debt. On top of that, they don't need credit card debt. Even more so if you bought things you didn't really need. No matter how much you want to live in the moment, a student has to plan for the future and figure out how to get out of debt as soon as possible. This should be his or her top priority.
When it comes to a credit card and budget, the future is very important. However, most college students don't know that credit cards come with fees. This is exactly how credit card companies make money, from the high APR rates to the late fees. Every college student should know one rule: they should pay their bills on time. If this bill isn't paid in full every month, an annual percentage rate (APR) that can be as high as 15% or more is added to it. Just think about how quickly this will add up. If you have a late fee and a balance of $500 that you haven't paid, the fee could be around $50.
A student who knows their stuff is a responsible student. You have to be responsible with your credit card, no matter how badly you want to live for today. Your credit score will go up if you pay your bills on time and know what the fees are. This will help you get a better rate on your car and home loans. How will this affect you? This means that you pay less in interest, which lets you save more money and retire early.
If you're a self-motivated person who cares about their financial future, it's important to know how a credit card can help you. If you follow these simple rules, you'll be one step closer to living the American dream.
