Lots of people argue that there should be no credit cards for students for
the simple reason that they are not responsible enough and can land in huge
credit card debt. This fact can be true to a certain extent but credit cards
help the students tremendously during their student life. This article takes a
look at essential things to keep in mind so as a student doesn't get bogged down
by the credit card debt.
Build a habit of shopping around for things
more so for student credit cards:
When you enter a college there are numerous credit card companies waiting to
offer you a credit card. Look at each one of them, it might look as time
consuming initially but it will save a for you over the college years. A student
credit card with lowest APR and other fees will be suitable. Look for rewards
that bring additional savings to you. Remember money saved is money earned.
Budget your expenses:
Making a budget is what everyone should learn in early life. The sooner this
habit is imbibed, more rewarding the financial future becomes. Budget out your
expenses, and eliminate the wastes. Being frugal is not good but being wise
Stick to your budget:
There are temptations to spend more and there will always be. Getting lured
into these temptations is a sure shot way to run into credit card debt. Remember
every purchase that you make with a credit card is a loan and has to be repaid
at the end of the month with interest.
Spend some cash:
Avoid the habit of paying for everything with a credit card. This will
accumulate a large credit card debt, on the other hand if you decide to pay with
cash for certain items, it will keep your budget intact and promote financial
discipline. Since you are spending only from what you have, not borrowing.
Repay on time:
Owning a student credit card is often the first step towards building a
credit history. If you repay all your credit card balances on time it will work
wonders for your credit history. A small job, part time assignment, tuitions,
anything can augment your income while you are in the college years. Paying your
own debt builds essential self confidence which, is crucial to succeed later on.
Keeping these things in mind will help you make the most of your student
credit cards and build strong foundations for a good credit history.