10 Worst Credit Card Mistakes College Students Make

It is a sad fact that a great percentage of people who are stuck in bad credit are students. The lack of responsibility and awareness has put many students in a bad credit situation.
Here are the top 10 worst student credit card mistakes that should be avoided:

1. Signing up to get a freebie
Many credit card companies offer free stuff such as free shirt, caps, mugs, etc. to attract clients. Some students think that signing up just to get the free stuff is a harmless practice. However, all your credit card applications are reflected in your credit report and too many inquiries on your account create a negative impression on your credit standing.

2. Using student credit cards to play on-line games
Many students found themselves in huge debt because of online gambling. Playing on-line using a student credit card can be a tempting hobby but you’ll also be putting your credit online.

3. Using student credit cards for shopping or dining
It is so convenient to go shopping or dine in a restaurant with your friends using your credit card. Unfortunately, this is also a quick and easy way to get stuck in debt. Many students do not realize that they’re already over spending until it’s too late.

4. Carrying a balance
Student credit cards can come with as much as 15% interest rate. A student who’s in the habit of carrying a balance on his account will undoubtedly find himself paying for more interest than he can afford.

5. Opening store credit cards to avail of discount
Many stores offer a store credit card in exchange for discounts. This may seem like a great way to save on your shopping. Don’t forget that despite the discounts, these cards come with high interest rates. Unfortunately, some students make the mistake of opening too many store credit cards at every boutique they shop. As a result, their spending gets out of control and their credit history is damaged.

6. Not paying on time
Students often fail to pay their balances on time. Thus, these students end up paying for high interest rates and penalty charges.

7. Using the credit card to buy an engagement ring
Many students used their credit card to buy a very expensive diamond engagement ring for their special someone. Most of them do not realize that it can take years paying off their credit.

8. Treating friends for a meal or a party.
College students love to eat out and party and sometimes a student may offer to pay the bills for her friends. Although this is a generous gesture, students should realize that they have a stable job to support them yet and that spending unnecessarily can hurt their credit badly.

9. Not keeping the credit card in a safe place.
Many students make the mistake of leaving their credit card inside their dormitories. Dorms often have open door policies so valuables can get stolen easily. Thus, students should be especially careful about where they keep their credit cards.

10. Lying about their charges.
Some students deliberately spend too much on their credit cards. Then, they call their credit card issuer and report that the card has been stolen. Obviously, this is illegal and must never be done.

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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