subject: Draw On Student Credit Cards Accordingly For Building Solid Financial Habits [print this page] Advertisements and booths for student credit cards sometimes can be an overwhelming feature for a young student. Some of these booths will even try to entice you with a free hat or t-shirt. You may not really know how you feel about having your own credit card with everything you have been hearing about debt. Relax. There is nothing to be afraid of. In fact, when used correctly your new credit card can help you in a number of positive ways.
As a student you probably do not have any credit. These cards are created to give someone with no credit history an opportunity to establish one. Owning a credit card when still in college can help you learn about the responsibilities that come along with having a line of credit.
Building your credit history goes beyond your needs as a student, but will carry through with you beyond graduation. Having an established credit history will help you make the transition into the adult world. Good credit can help you lease an apartment or car. It may even come in handy when applying for a job. Since some employers will check credit history, showing off the fact that you know how to handle your finances (with strong credit) is a wordless indicator that you are a responsible individual.
Creating a budget for yourself on a monthly basis will help in accurately using your new line of credit. A budget will also help prevent overspending as well. Carrying around a credit card is easier to handle than carrying cash. Needless to say, credit cards are accepted at nearly every shop you step foot in. If your credit card is ever lost most companies will have 24 hour hotlines in order to halt your card's activity.
Incentive programs are available on many cards designed especially for students. This is a rewards system based on when and how often you use your card. Whenever you use your card (if applicable) you will earn bonus points toward discounts or even a dollar value.
When you learn how to manage your money early on, this can help you when you are living on your own. When used correctly credit cards can help you learn how to budget accurately and make your payments on time. Also keep in mind that just as these types of cards have benefits, they also have downsides if not used responsibly.
Read the terms of agreement before you actually sign an application. You will be obligated to follow these terms once you receive this card. There are often financial penalties if you do not. Inquire about the interest rate on the card. Avoid high interest credit cards. Avoid making financial mistakes by educating yourself about the card you are applying for, or already have.
Using student credit cards responsibly can help build solid financial habits. When you create a budget, stick to your plan. You can easily get trapped in a cycle of debt. These credit cards can be a helpful asset in times of emergency or need. Just remember to use them wisely. You do not want to end up paying for financial mistakes you make in college for the rest of your adult life.
