Taking Charge of Your Instant Approval Student Credit Card

It is so easy to acquire a credit card when you’re a student since approval is not based upon credit history. Many issuers offer instant approval student credit cards in different packages. Some credit card companies even offer rewards which make them more attractive in the eyes of young consumers.

Thus, it’s not a question of whether or not you are qualified for an instant approval student credit card. The more important question is, are you ready for the responsibilities of a credit card owner?

Below are practical tips for young credit cardholders on how they can take charge of their accounts – use their credit cards for building good credit history and avoid bad the trap of bad credit.

Have proper motivation. Students must keep in mind that how they handle credit now will have a huge impact on their financial future. A student credit card is best used for building solid credit history. Thus, by the time you graduate from college, better opportunities will be available for you in terms of financing, employment, insurance, and more.

Always pay in full. Forget about minimum payments. Although credit card companies allow partial payments, it will be better for you to pay off your monthly charges in full and avoid carrying a balance.  By doing so, you can save yourself from the risk of bad credit and literally save lots of money by not paying interest rate.

No to splurges. It’s not a good idea to carry your student credit card when you plan to stroll around the mall. Never charge any purchase to your credit card if you did not plan to purchase it in the first place. If you see an item on sale, fight the temptation to buy it with your credit card just because it’s on sale.

Be conscious of your due dates. It is very important to submit your payment on time. If you fall behind even for one day, you will not only pay the penalty charges, you will also be inflicting damage to your credit score.  Write down payment reminders where you can see them at all times. Better yet, don’t wait until your deadline of payment arrives.  Submit your payments as early as you can.

Don’t borrow cash. Most credit cards provide cash advance feature which means you can use your card to withdraw cash from the ATM and pay it back at a later time. While this may sound like a great option, cash advances are not covered by the grace period so you are automatically charged with interest rate. In addition, the APR for cash advances is usually higher than the APR applicable to purchases or balance transfer.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit card articles that would help build student credit.
Copyright 2010

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