The Student Credit Card Trap

Each year, credit card companies send thousands of advertising mails to prospective cardholders. Young people or college students are strong potential market. If you’re a college student and this will be your first time to own a credit card you may be tempted to sign up with the first great offer that comes your way. Nevertheless, before you fill out that student credit card application, read on and see what you’re missing.

Owning a Credit Card for Students is a Responsibility

Just because you’re old enough to own a personal credit card doesn’t mean you should rush to get one. Ask yourself, are you really ready to be a credit card holder? Do you know how to manage a credit card account and avoid the dangers associated with uncontrolled spending? Have you really found the right credit card for student? Did you take time doing research and comparing your choices or did you just submit your application without much thought?

Many credit card companies offer a very low minimum due payment which at first glance, may seem like a very enticing deal. However, the minimum due payment doesn’t exempt you from your obligation to pay the interest rate costs each time you carry a balance in your account.

Thus, the longer you put off paying your entire credit card balance, the more you’ll have to pay on additional interest rate fees. This is why student credit card holders shouldn’t fall into the habit of submitting only the minimum due payment because it will put you at risk of bad debt.

Building Your Credit History

Some students have the false notion that in order to build a higher credit score, they need to maintain a balance in their account. Is this true? Hardly. The fact is, you can raise your credit score and maintain a good credit history by being consistent with your payments. If you pay off your monthly balances in full, you avoid the risk of late payments and bad debt.

If you decide to get a credit card for student, your primarily goal should be to build up a solid credit history. The only way you can achieve this goal is to avoid late payments and to stay within your given credit limit.

Know Your Student Credit Card Well

Deciding on which student credit card to get can be a tough one. If you won’t study your choices very carefully, all credit card offers in the market may seem like a great deal. In order to find out the truth, you need to compare your choices based on the Terms and Conditions of the card.

Once you have a student credit card, how can you avoid the snare of bad debt? Use your student credit card on sensible expenses and closely keep track of your account. Pay off your bills on time and avoid exceeding your credit limit. In case you can’t submit your payment on time, pay your minimum due and speak with your credit card issuer to request for a deadline extension. Whatever you do, never ignore your credit card bills. If you didn’t receive your bill on time, inform your issuer immediately and inquire about your balance.

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.
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