If you are a student who owns a credit card, can you confidently say that you are using your credit card to your best advantage? Whether you plan to apply for a student credit card or already has one, here is a guide that can help you use a student credit card to build good credit.
Credit Card for Students Guide
The Right Information
Some students get a credit card without doing any research at all. But being informed on how credit cards work can help you avoid the risks associated with improper credit card use and save yourself from trouble.
If this is your first time to get a credit card, why not ask your parents or guardian for advice? You can also use the internet to find useful information. Read online credit card reviews, visit financial forums, and ask around for opinions from long time cardholders. This way, you can make a better decision based on facts, not on hunches or guesses.
You and Your Personal Credit
Know how your personal credit score is calculated. Study the factors or the criteria that credit bureaus used to come up with your credit score. Understanding how credit scoring works will make you realize the importance of staying true to your payment obligations.
Be a Responsible Credit Card Holder
Being a responsible cardholder means more than just submitting your payments on time. More importantly, it means learning how to use your student credit card to your benefit. For instance, using it to buy things that are not really that important puts you at a greater risk of being stuck in bad debt. Self-discipline and motivation are two important qualities that credit cardholders need to observe at all times.
Before using your credit card for purchase, ask yourself:
• Do I really need to buy this item?
• Can I purchase it later when I have the cash?
• Will it help my education or am I just satisfying my personal whims?
• Am I 100% sure that I can pay it back on time?
Students- Seek Guidance from Your Parents
Most credit cards for students today do not require a co-signer. However, even if you don’t need your parent to cosign for you, it is always worth the effort to ask advice from your parents before making a final decision, especially if your parents have been handling credit cards for a long time.
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