Tips on How to Use Student Credit Cards Wisely

For young people who are starting to build their own credit history, credit cards for students can be the perfect tools for building credit. Nevertheless, achieving a good credit standing all boils down to how the student manages his/her credit card. If you are a student credit card holder, below are some tips written just for you:

Use only one credit card at a time. If you own more than one student credit cards, make sure you don’t use two or more cards within the same month. Incurring charges on more than one card can prove to be risky, especially since most students do not have their own source of income and try to pay off their charges using the money sent by their parents.

Be mature. This is your chance to show that you are a responsible adult. Thus, before using your first credit card for anything, ask yourself these questions:

  • Do I really need to make this purchase now?

  • Is it really important?

  • Can I pay this in full on or before the due date?

  • Will I need to ask money from my parents to pay for this?

Limit your credit usage. How much of your borrowing limit you use can make a big difference in your credit rating. Experts recommend not using more than 40% of your available credit. By keeping your purchases minimal and by paying your monthly balance in full, you can avoid the risk of debt build-up and maintain good credit rating.

Submit your payment right away. There’s no need to wait until your due date before you submit your payment. You should make your payments at the earliest time. If you have the cash in your hands, why not submit your payment the same day you made the purchase? This way, you can avoid additional charges such as the interest rate and late penalty fee.

Plan your spending. Never use your credit card for any purchase that you did not plan. If you want to use your credit card to buy your groceries, create a shopping list before going to the supermarket. Stick to the plan you created and fight the temptation to buy things that are not on your list. By doing so, you can avoid purchasing things that are not important or you do not really need.

Keep your credit card in a safe place. You need to be conscious about where you put your credit card whether you are in school, in your dormitory or outside. If you lost or misplaced your card, call up your bank or Issuer immediately to report it. When paying with a credit card, keep an eye on your card and make sure that it never leaves your sight.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit card articles that would help build student credit.

Copyright 2010

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