What a College Student Should Know About Credit Cards
College is sometimes the best time to get a credit card because you are finally 18 and you will some expenses that you need to pay for on a regular basis. When it comes to what you should know about credit card as a young man or woman, you need to keep things simple and think about the process rather practically. Although a credit card may seem like a gateway to free money, it is actually more often a gateway to debt. You need to be careful about how you use your credit card when you get it in the mail, so think about your actions before you make certain large purchase orders.
One tip for student with credit cards is to remember to balance your expenses on a monthly basis. If you cannot afford to buy something with the money that you have in your pocket, then you should not be buying it at all. You should really not even make a purchase even if you think you are going to have money in the future because sometimes that money does not get to you fast enough. The credit card company is going to want to hit you with fees and extra interest as often as possible, but that kind of stuff will not happen as long as you take care of your expenses and plan ahead. When it comes to what you should know about credit card, the main thing you need to remember is that these credit card companies make money when you get behind on your payments.
Another tip for student with credit cards is that you never want to miss a payment. Missing a payment is basically financial suicide when it comes to credit cards because that is when the downward spiral will begin. You will miss one payment and be hit with fees, and then you will be forced to pay interest on those fees and your remaining balance. If you have a payment coming up and you do not have any money to pay it on time, then you need to ask a friend or family member for help. It may be embarrassing to be forced into asking someone you know for money, but it is much better than having to pay interest on your purchases and hurting your credit score.
One last tip for student with credit cards that you should remember is that you never want to bring your credit card with you to the mall or any other place where you could go on a spending spree. When it comes to what you should know about credit card, you need to remember that it is rather easy to pull out that card and spend money that you don’t have. When you leave the card at home, you will be able to make sure that you never make a regrettable purchase while you are out on the town with your friends.