College students usually end up with a lot of charge card offers specifically tailored to them.
Although using plastic can be a good way to build your credit history, it can also be a disaster waiting to happen.
Below are some tips for college students to put into practice before accepting a charge card.
1.
Make sure you avoid the credit card traps of "freebies" and "easy credit".
The credit card companies like to make anyone, especially college students, think that you have to have a credit card and that without it you will not survive the college years.
The "freebies" the credit card companies give you, t-shirt, mug, umbrella, are going to end up costing you a lot more then they are actually worth.
Think about it.
In the long run, after using your card for purchases and paying interest on the balance, it adds up quickly.
On top of the balance with interest paid, most cards have an annual fee.
Even if you do not use your charge card one time you will still have to pay that fee.
Also they have late payment fees that average around $39 each time and over the limit fees.
That so called "freebie" just may be worthless.
2.
There are some quick questions to ask yourself before obtaining credit Do you really need to have a credit card? If you are able to pay for what you need and/or want with cash then you may not need a credit card.
The plus to having plastic is that it is more convenient, especially to purchase online, and it helps to build your credit, as long as you pay on time every month.
Can you afford to have a credit card? If you cannot afford the payment each month then you may not want to chance getting a credit card and ruining your credit for paying late.
If you can however, pay your balance in full each month it is a great way to use someone else's money each month without paying any interest.
What will I use the credit for? Never use your charge card for living expenses, such as eating and a place to live.
Do not purchase items with your credit you want that you are not willing to pay cash for either.
A good use of credit cards is in emergency cases, such as car repairs.
Be wise about what you put your good credit towards.
3.
Make sure you understand the credit terms.
Not all cards are the same.
They each had different terms that include interest rates, annual fees, and changes made to the terms.
Always know what you are signing.
4.
Carry only one charge card.
Having more then one can not only get you into serious debt, and possibly bad credit, but they can also be difficult to manage.
Having one card will better enable you to make your payments on time and build good credit.
5.
If you see that you are in trouble with your cards, get the help you need fast! It is so easy to get into trouble with plastic.
If you see that you are not able to make your payment on time, don't wait until after your due date to get the help you need.
Ask family or friends for help to get that payment in on time if you have them in your life.
If not you can always go to a consumer counseling agency.
Use these five tips to help get you started in finding the right card for you and in using it wisely.