Common Student Credit Card Mistakes

Some people are hesitant to get credit cards for students thinking that owning often leads to bad credit. In worst cases, some students even had to file for bankruptcy because of uncontrolled credit card debt. But this doesn’t need to happen in your case. Owning a student credit card has its advantages and by avoiding these credit card mistakes, you can eliminate the risk of bad debt.

Common Mistakes on Credit Card for Students

Signing up for card without doing comparison. There are many available choices of college credit cards in the market. Unfortunately, many students rush into signing up with the first credit card offer in their mail. But what seems like a good deal at first may end up to be a bad deal once the promo period is over. This is why students are advised to compare each student credit card that they’re considering before making a final choice.

Maximizing student credit limit. Even if a credit card has very low rates, one should be careful not to use his credit limit to the full. Doing so can cause you to incur additional charges such as over-the-limit costs and increased interest rates. On the other hand, keeping more than 50% of your credit limit free improves your credit history.

Late payment of credit card bills. All credit card holders must pay attention to their due dates of payments. Late payments cause late fees and puts you at risk of debt build up. Maintaining an unpaid balance in your account will not improve your credit score. It is the timeliness of your payments that matters most.

Using your student credit card on everything. Credit cards for students are meant to support you with your studies, particularly school expenses. But this doesn’t mean you should use your credit card every time. Be wise. Make sure that you use your credit card only for the most important things.

Carelessness. Another big mistake that must be avoided is being careless in handling credit cards. Don’t leave your card unattended or write your card details just anywhere. Others can easily get your card information and use it to commit fraud against you. If you’ve lost or misplaced your card, call your issuer and ask them to block your account right away.

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 2009
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1 comment for “Common Student Credit Card Mistakes

  1. December 10, 2008 at 12:06 am

    It’s always best to try and pay the balance of at the end of the month to avoid interest payments, especially as a student. If this does happen the looking for a new card where you can get an interest free period on the balance transfer can help to get he balance paid down.

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