As a college student, you must understand the importance of using your credit card wisely. This is the time in your life where you will begin to build your credit and the more wisely you use your credit card now the better your credit will be when you are older and trying to do things such as buying a car or a house, or even renting an apartment or a car. Follow these tips to help you use your credit card wisely while in college.
Avoid Having Multiple Cards
Once you have qualified for one credit card you may be tempted to try to get more credit cards. This is a bad idea because the more cards you have the easier it is to get into financial troubles such as debt. Master using the credit card you have before you even thinks of applying for another one.
Try To Only Use Your Credit Card For Important Things
While you are in college you will probably not have the income most older card holders have. This means you don’t want to rely too heavily on your credit card. Get used to paying for everyday purchases in cash and save your credit card for large purchases such as textbooks and tuition payments. If you are attending college far from your family you will likely need your credit card to book flights, rental cars, trains or other forms of transportation. If your card is maxed out because you use it to buy your morning coffee, your daily pack of cigarettes or expensive lunches you may find yourself unable to make important purchases.
Always Pay Your Bill On Time
The better you are at paying your monthly credit card bill by its due date the better your credit score will be later in life. Ideally you want to pay your card off in full every month, but if you can’t do that it is crucial to at least pay the minimum amount every month. If you don’t, you will end up paying fines and fees to your credit card company and this will have a negative effect on your credit.
Get A Low Credit Limit
Your credit limit will be based on your income and this means that you likely will have a credit card with a low limit on it while you are in college. While you may think of this as a negative thing, just realize that the lower your limit is the easier your credit card account is to manage. This can help you get into smart credit card habits now.
Using a credit card wisely is something you must do at any age, but the college years are especially important because you are laying the foundation for the rest of your life. The more wisely you use your credit card now the better your financial future will be. Now is the time to start learning how you can be financially successful in life and managing credit is a good start.
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