• 4 Tips for college students to use their credit cards wisely
If you are in college, it is high time that you get your very own credit card. Student credit cards are a great way to establish your credit history. However, you must keep in mind that these cards generally have a high interest rate. If you are unable to make payments, you may fall into trouble. So have a disciplined life, build good habits and try to repay the card in full. This article provides some smart tips on how to use credit card for college student.
Tips to use credit card for college student
  • Here are some tips on how to use credit card for college student.
  1. One credit card – Do not apply for credit cards frantically. College students are often tempted to apply for various credit cards. It is always good to keep the number of credit cards to a minimum. Less number of cards may also prevent you from taking in extra debt. You must realize that every time you apply for a credit card, there is a drop in your credit score.
  2. Selecting a credit card – Don’t choose a credit card only because it is giving out free gifts. Wisely compare the offers that are provided to you by different credit cards before you choose a particular card. Make sure you check the fees and the interest rates charged by the various credit cards and then choose the one that suits you most. Thoroughly read through the terms and conditions of your credit card agreement before signing it up.
  3. Remain under credit limit – Be careful to remain under your credit limit. Once you cross your credit limit your payments may rise up as the over-limit fees are expensive. It is better to not to extend your charges more than 10% to 30% of your credit limit.
  4. Don’t consider cash advance – Cash advances are not as helpful as they seem to be. In case you consider a cash advance you may have to pay 2% to 4 % cash advance fee plus finance charges on the amount you withdraw. Thus, it is better to stay away from cash advances.
Apart from following the tips mentioned above, as a student you must be responsible and you must know how to take care of your credit card. Be careful not to lend your credit cards to others, it may do a lot of harm to you. If you lend your credit cards to your friends, you are responsible for paying any charges because it is your credit card and not your friends’.