Right comes with responsibility. This rule is also true for credit cards used by college students. These small pieces of plastic look like they won't cause any trouble, but they do. When you're in college, you spend a lot of time studying and even more time having fun with your friends and classmates. And if you're not careful, your college years will also be ruined by credit card bills that could lead to thousands of dollars of crippling debt that will follow you for a long time.
This bleak picture shouldn't stop college students from using credit cards. Instead, it should help them avoid using them in bad ways. If you know how to remember the most important rules and keep them under control while planning your purchases, you can learn how to use credit cards well and get the most out of them.
Credit Cards for College: The Easy Way Out
- Make a plan: First, figure out how much you spend each week and each month. Usually, these are things like food, books, and transportation. Traditional credit cards and credit cards for college students both send monthly billing statements that should help you figure out your overall budget.
- Be careful to stick to the budget. Plan to use your credit card only for these important costs. Don't forget that most problems start when you don't pay your monthly bills. You can easily avoid this problem if you plan out your credit card expenses ahead of time. This means not getting into more debt and making sure your credit card bills are paid on time.
- Only pay for big things with your credit card. Most of the time, college students shouldn't use their credit cards for everyday purchases. Instead, they should only use them for big purchases or emergencies. Use them to buy things like furniture and books that you'll keep for a long time.
Don't overspend. If you don't have enough money in your wallet to pay for random costs, don't buy them. Even if it seems like a good deal at the time, buying beer for your friends, CDs on the Internet, and soda can all add up.
- Don't ask your parents for help. Be responsible and old enough to handle your own money so you don't have to call your parents to bail you out. If you are old enough to have a credit card, you should also be smart enough to use it wisely.
What's in it for you if you get a credit card?
If you think you can handle it, here are some reasons why you should put in the time to learn how to use a credit card:
You can use a credit card to buy things online or over the phone.
Credit cards are very important in times of trouble.
They can also help you pay for things that are more expensive.
- If you use credit wisely, you can build your credit score. This will help you in the future when you want to invest in a business, buy your first house, or even get your first job.
Get a jump on things
So credit cards for college students could be the best way to plan for your financial future.
Please remember that even in the student loan market, companies offer different interest rates and periods without interest. So be smart when you shop for a credit card. Think of this as great practise for when you have more than one card, student loans, and maybe even a mortgage on your house.
Once you've chosen a credit card for college, it's important to know how it works and what benefits you can get from it. Pay close attention to your bills and figure out how to pay them every month. Also, keep an eye out for better offers. You don't want to be stuck paying higher interest rates than you have to.
