The whole college experience can be one of the most exciting events that can happen in a person’s life. With regards to money matters college is often the time when youngsters try to really hone their financial management skills. For most, this is also the time to get their first credit card.
Applying for a credit card today is a lot simpler. Most issuers offer an online application feature so all you need to do is fill out an online application, click submit , and get a response to your application within minutes. However, students should be cautious when filling credit card applications. Here are pointers that you should consider before signing up for a student credit card.
Pointers to Consider when Signing up for your First Credit Card
Are you old enough to apply on your own? There are student credit cards that do not require a co-signer but there are some who does especially for those below 18 years old. If you need a co-signer, the best person to ask is your parent or guardian.
Do you really understand the Terms and Conditions? The best rates and low fees that are advertised may be subjected to certain conditions. Take time in reading the fine print to make sure that you are in agreement with the credit card company’s conditions.
When should you use your student credit card? Getting approved for a student credit card is fairly easy. IT is managing your credit card account that is the more challenging part. Unfortunately, some youngsters weren’t able to exercise control over their credit card use. This often resulted to bad credit or bad debt. As a college credit cardholder, you should be aware of your responsibilities to your issuer especially with regards to repayment.
Are you ready to be a credit card holder? Another thing to consider is how you plan to pay off your credit card charges. Will your parents help you with the payment or will you be entirely on your own in paying off your charges? Before charging any purchase or bill to your account, consider your plan of repayment.
Are you aware of how your credit card use affects your credit history? Students are encouraged to apply for a student credit card to build a solid credit history. But this can only happen if you can use your card responsibility. Delays in payments, exceeding your credit limit, paying only the minimum required due- these are all habits that can have a negative effect in your credit history. So before you go and use that card, consider how it will affect your personal credit.
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