Unlike in the past years, this study has proven that college students are now more aware about their responsibilities as credit card holders and this is shown by the fact that most college students pay off their monthly balances in full. Overall, the average balance in a college student’s account is $552 which is just one third of the average balances of the general population.

This is certainly a good news and hopefully, this trend will continue and improve in the coming years. More and more young people today are becoming aware of the importance of having a student credit card especially when they enter college. With the help of information available online, students are learning the basic points on how to use credit cards while protecting their credit at the same time.

It is true that one of the challenges about owning a student credit card is controlling spending. Many students have developed debt problems because they continue charging purchases on their student credit cards and paying only the minimum each period. Because student credit cards are so convenient to use on shopping, many people- including adults, tend to forget the consequences of not being able to repay their balances on time. But this can be prevented if a student practices self-discipline and determination in keeping the use of credit cards in perspective.

Of course, aside from convenience, the main purpose of acquiring student credit cards is to build credit. But a credit history will not be of much use if all that is contained in one’s credit report are unpaid debts and past due bills. If you’re a student, always remember that protecting your credit history is just as important as establishing it.

Credit cards for students are now accompanied by options that help students manage their finances more easily. Banks send out monthly statement of accounts by mail, but now, students also have the option to check their account at any time just by going online. This way, even when they’re too busy with their classes and projects, they can still take a few minutes from their time and check on their account.

Another great provision is the liability fraud protection that most credit card companies offer. This is important for college students if they incur unauthorized charges in their account. Carrying a credit card instead of cash is also a safer way to buy things or pay bills. In case their credit card is misplace or stolen, a student can call the bank right away to freeze the account.

Finally, many student credit cards now give students the opportunity to earn bonuses or incentives from their purchases. Discounts from selected merchants and establishments also make a big difference in helping students save their monthly budget.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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Read your credit card agreement. In reality, not many credit card applicants take the time to read their credit cards’ Terms and Conditions in full. As a first time credit card applicant, make it a habit to read the fine print before signing up for anything. Why is it crucial to read the fine print? Because the true costs of your credit card are disclosed here. What you see in the ads are only the best features of the credit card, the actual conditions are explained in the Agreement and it is up to you to find out.

Set your monthly budget. As a student, practice effective budgeting or money management starting now. This will greatly help you in handling your finances in the future. Set a definite amount for you to spend each month and make sure that you have enough to set aside for your debts, credit card payments and for your savings. Every month you should be putting something away in savings. If you can’t put something away in savings each month then you are living outside of your means and you need to take a hard look at your spending habits.

Pay off your credit card balance in full each month. Make it a point to pay back your monthly credit card balance in full to avoid paying the interest. There are some credit building companies that say its good to leave a running balance on your credit card because it will encourage the credit companies to increase your credit limit. I don’t know how true that is. I’ve had cards that I have paid off each month that have given me regular credit line increases. What matters most in building your credit history is how you use your available credit and how timely you are in submitting your payments.

Stay within your credit limit. Staying within your credit limit means more than just not going beyond your allotted credit. Financial advisers recommend not using more than 30% of your available credit if you want to keep your credit history in excellent standing. This habit will not only protect your credit history, it will also protect you from the risk of incurring more debts than you can afford.

Check your credit card statements regularly. It is your obligation as a credit card holder to check the accuracy of your account statements. If you find errors or unauthorized charges in your account, call your credit card issuer immediately. If your credit card company provides online access to your account, take advantage of this feature by checking your account on a daily basis. Doing so will also alert you about your due dates of payment.

Use your credit card with caution. Credit cards are meant to be financial tools when you need them. Nevertheless, credit cards are not supposed to be used without careful consideration. Before charging a purchase to your credit card, ask yourself, do you really need to make this purchase? Can you pay back your balance by the end of the month? Is it a necessity or just a want? How will this purchase effect my monthly budget?

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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But what if you do find yourself incurring student credit debt that you can barely keep up with? What can you do to straighten out the situation? Is there a credit repair guide that can help you get out of this situation on your own? In this article, let’s focus on the steps that you can do yourself to get out of credit card debt.

Do a self-check. A personal analysis of your spending habits is the first step so you can really see the weight of the problem you’re facing. How much do you spend for the whole month? To be objective about your answer, get a pen a paper and jot down everything you purchased or paid for in the past month. This should include your utility expenses, school expenses, as well as the money you spent on your personal needs and for leisure. Write down everything and compare the total with your monthly allowance.

The realization. After putting it all on paper, what did you find out? Have you been spending more than what you should on your personal and leisure expenses? Do you often use your student credit card for those expenses? Are there adjustments you can make in your lifestyle to help you cut down your expenses each month? Realizing the actual problem will help you move on to the next steps in your attempt to repair your credit.

Create a budget plan. As a student, you can create your own budget plan by writing down in advance your priorities in expenses. Of course, this should include your debts, utility bills, your rent, food, tuition and other school fees. Next jot down the budget you’ll need for your transportation allowance and other everyday expenses. Don’t forget to write down the money you need to set aside for your personal savings and insurance. Finally, write down the budget you’ll need for your personal spending such as your clothes, going out with friends, snacks, etc.

By jotting down all the things you need to pay and prioritizing them according to their importance, you can allocate your monthly allowance more effectively. This will help you avoid spending your money on unplanned purchases while leaving you unable to pay for the more important bills.

Pay your credit card bills. If you have currently have unpaid balances on your credit cards, you should prioritize paying off these debts as soon as you can. Don’t forget that the monthly interest you incur in your student credit card will only put you in more debt as you let time pass. Find ways on how you can collect the money to pay off your student credit card completely. You may need to make some sacrifices on your own budgeting at least until you can pay off your credit card debt. You may also borrow money from your parents or relatives to get out of debt more quickly. Just remember, be responsible enough to pay for what you owe even if they’re from your family.

About the Author
Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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Parents and guardians play a big role in helping young people become aware and understanding the dangers of using credit cards. Hopefully, by being aware of the risks, these young people can avoid the pitfalls that lead to bad credit and high credit card debt. If you’re a parent or a guardian, here is how you can play your part.

Teach students to watch out for the wrong credit cards. With so many student credit cards offered in the market, students need to be very particular and careful about which credit card they choose. Let them be aware that some advertisements may be just propagandas meant to trick consumers into believing that a credit card is worth owning. Remind them that not all credit cards are the same and some may even take advantage of their inexperience.

Give your personal advice. You can give valuable pointers about how to handle credit cards more effectively and which credit card issuers are worth checking out. If you’ve been using credit cards for a long time, you may also share your own personal experience in how you handle your account and how you stay away from credit card debt. If you have encountered a problem with credit card debt however, don’t hesitate to share it as well. Students can learn a lot if they hear an actual account from someone they personally know.

Teach them about interest rates. Even as kids, you can already teach them about interest rates & fees so they can understand that this also a money-making business and credit card companies are also after making profit. This is why consumers have to be more responsible in the choosing.

Teach them about credit card terminologies. Young people should also be aware of the terminologies or factors that are involved with credit cards. For instance, let them understand about APR, penalty fees, credit limit, grace period, due date of payment and other factors that they need to know about credit card. As they become familiar about these terms, they’ll already know what things to look for when it’s time for them to get their own credit card.

Teach them about the importance of building up their credit history. Another important thing that young people must learn about student credit cards is how it plays a big role in building up their credit. Make sure that your kids understand that how they manage their credit card account directly affects the status of their credit. For instance, they need to know that failing to keep up with their payments and exceeding their credit limit damages their credit. Let them understand the importance of having an excellent credit status and how it can open doors of opportunities for them.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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Read More on Top 50 Paying Careers for 2008

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Now they have come out with a card called Citi Platinum Select MasterCard (Tier 2)

This card is specifically designed for people with NO credit history.

Here are some of its features:

• Reports to all major credit bureaus
• No Annual fee
• 0% APR on purchases for 6 months*
• $0 liability on unauthorized purchases
• Citi® Identity Theft Solutions
• Free Online account management

*See Card Terms and Conditions

Citi Platinum Select MasterCard (Tier 2) Review

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In today’s world, there is a credit card available for just about everybody. You are going to find yourself pummeled with credit card offers at some point or other. This is especially true for students. This is where patience, research, and common sense should come into play. Never choose the first credit card offer that comes across the table. Set a standard by what you’re willing to allow yourself to be charged in interest. After all, this is money that will be coming out of your pocket. This means getting in the habit of reading the fine print of the offer.

Some companies offer low to zero interest but this usually for a set period of time from one month to one year. Read the fine print so you don’t wind up with a zero interest credit card that suddenly charges you 18% interest.
It’s also very important to note that if you apply for too many cards at the same time, this can put a negative light on your credit report. Each lender that checks your credit generates a line on your credit report called an inquiry. You will end up getting rejections if you apply for card after card.

If you have no credit or a bad credit rating, the best card to apply for is the unsecured credit card. Getting this card and making your payments on time signals that you’re a good money manager and responsible with your financial matters. This is a great way to establish credit or begin rebuilding your credit. More often than not, once you’ve established that you’re a good credit risk, you might be given the option of an unsecured credit card with a much higher spending balance.

Knowledge is the key and understanding the credit game will save you a lot of time and money over the long period. Remember, that many people are in debt because they have a good number of credit cards with high balances. One personal financial disaster can leave you seriously in debt. Once you get your credit card, use it wisely and never use the credit card to pay for anything you can write a check for. Remember that legitimate credit card companies are not going to ask you for money up front. Never apply for credit cards you don’t need.

Use these tips to understand the application process and use your credit wisely.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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To get the most out of a rewards credit card, it’s important to choose the type of reward that fits your way of life. For instance, why would you pick a travel reward card if you don’t travel? Travel reward credit cards program requires huge points before you get entitled for a free travel. If you know that you will not be making large amounts of purchases on your credit card, then it’s not practical to choose a Travel Rewards credit card because it will take you a very long time before you gather enough points and get the free travel. Therefore, travel rewards credit cards are great for those people who frequently flies abroad and spends a lot on their credit cards.

Read More: Take Full Advantage Of Your Credit Card Rewards

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1) Overspending
Credit cards are great tools in building credit but if not used carefully, credit cards can also be a trap to uncontrolled spending. Since credit cards are easy to carry and easy to use, it’s also easy to lose control of one’s spending. Thus, self-discipline and a strong sense of responsibility must be practiced by all credit card holders.

2) Taking out cash
Credit cards today can also be used as debit cards. Many credit card holders do not realize that each time they take out cash from their credit card, they are instantly charged with interest. If you need cash, don’t take it out from your credit card.

3) Paying only the minimum
Submitting only the minimum payment from your balance is a very bad habit. As long as your balance is not paid in full, the balance is carried over for the next billing period and the interest accumulates.

4) Being late or missing payment
Being late or missing your credit card payments leaves a card holder with more debts that he already has. Late penalty charges and high interest rates can badly hurt a person’s credit.

5) Not shredding credit card receipts
Identity thieves look into trash bins in search of used credit card receipts. These thieves make use of any personal information they can get such as your bank account number so they can use it against you. Before throwing away credit card receipts or billing statements, make sure that they are completely shredded.

6) Not checking your credit card statement
Some credit card holders overlook the importance of reviewing credit card bills for accuracy. You could be paying for charges you never make if you don’t make sure that your billing statement is correct.

7) Throwing away expired credit cards
When you receive your new card, make sure that you properly dispose the old one. Cutting them in half isn’t enough, as identity thieves can still get details out of it. Instead, cut them into small pieces and do not throw them in just one garbage bin.

8 ) Applying for a very large credit
A large credit gives you more privilege to spend big on your account. If your monthly income isn’t suffice to pay for such a large credit, it would be better to settle for a credit card with a lower credit limit.

9) Applying to different credit card companies at once
Submitting too many credit card applications to different companies can be bad for your credit score. Apply only to a credit card company you’re seriously considering.

10) Maximizing your credit
If you’re using your credit limit to the full, that’s a clear sign that you’re spending too much on your credit card. It is advised that a healthy spending should not go beyond 30% of your credit limit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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1. Closing credit cards that you’ve had for a long time. How long you’ve had credit plays an important role in determining your credit standing. Creditors prefer borrowers who have a long record of credit history. Closing credit cards that you’ve had for a long time is a bad move since it will be like deleting a part of your credit history. If you think you own too many credit cards, consider which accounts to close and do not close the ones you’ve had for many years. If the problem is that your old credit cards come with high interest, you don’t have to use them on a regular basis. To prevent them from automatically closing, you may use them once every few months to buy an inexpensive item. This way, you can immediately pay the balance in full and avoid paying for interest.

2. Missing on your credit card payments. Your ability to pay and how responsible you are in paying your debts are all reflected in your credit report. Obviously, missed payments will put you in a bad light. Other creditors will deem you as a high-risk borrower and you will not have the privilege of obtaining better rates when you apply for loans.

3. Using your credit limit in full. If you are in the habit of frequently maxing out on your credit limit, you are putting you are badly damaging your credit reputation. Those who use their credit limit in full or exceed their allowable credit are regarded as high risk. Using up your credit is also a clear sign that you are spending more than what you can afford. Credit card holders must all be aware not to exceed 50% of their allowable credit.

4. Not regularly checking your credit report. Sadly, many consumers neglect the practice of checking their own credit report. However, being aware of your credit report is one way to protect your account from fraud, illegal charges and identity theft. It also helps you keep up with your due dates of payment to your different creditors. It is recommended to get a copy of your personal credit report at least once every six months.

5. Not understanding your rights as a consumer. The Fair Credit Reporting Act has established rules and regulations for all lenders to follow. Do not let a creditor take advantage of you. Know your rights as a borrower.

6. Not being aware of the three major credit bureaus. Most consumers do not know that the three major credit bureaus (Equifax, Experian, Transunion) work independently in creating credit reports. You may request a copy of your credit report from any of these bureaus and if you find some corrections, do not hesitate to inform the bureaus right away.

7. Not building credit. Not having any credit in your account is a mistake. Creditors are not the only ones who check on one’s credit history. Employers and landlords also use an individual’s credit history as a basis for accepting applications. Without a credit history and a credit score, you will be very limited in your dealings.

8. Owning too many credit cards. Contrary to what many believe, owning a lot of credit cards will not boost your credit score. It is how you handle your credit card accounts that matters. Owning two different credit cards should be enough as long as you can keep up with your payments.

9. Using your credit cards as debit cards. Although some credit cards double as debit cards, a high interest rate is immediately charged right after your cash advance is made.

10. Submitting too many credit card or loan applications. Some consumers send applications to credit card or loan companies just to free stuff. However, each time you submit a credit application to a lender, an inquiry will be made on your credit report. The number of inquiries and the creditors who inquired your credit will also be reflected in your report. Shopping for credit will lower your credit score especially if creditors decline your application.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2008

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