Getting a student credit card in college is a great way to build your financial future. Student credit cards not only offer great rewards but also help you build your credit history. Although student credit cards are a great resource to have it is important to use them properly. Here are some tips to consider when getting a student credit card to prevent a credit card disaster.
Only purchase what you can afford.
May sound like a no brainer, but this is where most get into trouble. That new PS3 or HDTV you’d never have the cash to pay for may seem like a good idea when you’ve got plastic. If you are unable to afford to pay with cash for that item don’t purchase it.
Don’t replace student loans for credit cards.
Federal student loans have low, fixed rates, as well as federal benefits that will allow you to postpone making your loan payments if you ever experience a financial hardship. This is something credit cards do not offer. Take advantage of your federal aid, scholarships and private student loans first before turning to student credit cards to cover educational costs.
Sign up for alerts.
Most major credit card companies offer automatic text or e-mail alerts that can notify you about your current balance and payment due dates. If you’re prone to forgetting payment dates or losing bills, use these alerts. It will make remembering those card bills so much easier and will save you money.
Pay the balance off.
Don’t settle into the habit of just paying the minimum due, pay off the entire card balance each month to prevent years of higher payments and fees.
Ice, Ice baby.
If all else fails, stick that credit card in a large bowl, fill it with water and stick that bowl in the freezer. The next time you’re enticed with an impulse Snuggie buy you’ll be giving yourself time to think. Thawing or breaking apart that block of ice will give you the needed time to collect your thoughts and think about that purchase you’re about to make.
5 Ways to Avoid a Student Credit Card Catastrophe
Posted by College Spot in College Finance
Getting a student credit card in college is a great way to build your financial future. Student credit cards not only offer great rewards but also help you build your credit history. Although student credit cards are a great resource to have it is important to use them properly. Here are some tips to consider when getting a student credit card to prevent a credit card disaster.
Only purchase what you can afford.
May sound like a no brainer, but this is where most get into trouble. That new PS3 or HDTV you’d never have the cash to pay for may seem like a good idea when you’ve got plastic. If you are unable to afford to pay with cash for that item don’t purchase it.
Don’t replace student loans for credit cards.
Federal student loans have low, fixed rates, as well as federal benefits that will allow you to postpone making your loan payments if you ever experience a financial hardship. This is something credit cards do not offer. Take advantage of your federal aid, scholarships and private student loans first before turning to student credit cards to cover educational costs.
Sign up for alerts.
Most major credit card companies offer automatic text or e-mail alerts that can notify you about your current balance and payment due dates. If you’re prone to forgetting payment dates or losing bills, use these alerts. It will make remembering those card bills so much easier and will save you money.
Pay the balance off.
Don’t settle into the habit of just paying the minimum due, pay off the entire card balance each month to prevent years of higher payments and fees.
Ice, Ice baby.
If all else fails, stick that credit card in a large bowl, fill it with water and stick that bowl in the freezer. The next time you’re enticed with an impulse Snuggie buy you’ll be giving yourself time to think. Thawing or breaking apart that block of ice will give you the needed time to collect your thoughts and think about that purchase you’re about to make.