College students typically end up with plenty of charge card offers specially tailored to them. Although using plastic may be a fantastic way to build your credit history, it may also be a disaster waiting to happen.
- be sure to avoid the credit card traps of freebies and easy credit.
The credit card companies prefer to make anybody, particularly college students, think that you need to have a credit card and that without it you would not survive the college years. The freebies the credit card companies give you, t-shirt, Mug, umbrella, are likely to wind up costing you a great deal more than they are actually worth. Consider It. In the long term, after using your card for purchases and paying interest on the balance, it adds up fast.
In addition to the equilibrium with interest paid, many cards have an annual fee. Even if you do not use your credit card one time you will still need to pay this fee. They also have late payment charges that average around 39 each time and over the limit charges. That so called freebie just may be unworthy.
- There are some quick questions to ask you before getting credit
Do you really have to get a credit card? If you are able to pay for what you want and or want with money then you might not require a credit card. The bonus to getting plastic is that it is more convenient, particularly to buy online, and it will help to build your credit, provided that you pay on time each month.
Can you afford to have a credit card? If you cannot afford the payment each month then you might not want to chance getting a credit card and destroying your credit for paying overdue. If you are able to however, pay your balance in full each month it is an excellent way to use somebody else’s money each month without paying any attention.
What will I use the charge for? Never use your charge card for dwelling Expenses, like eating and somewhere to live. Do not buy items with your credit you need that you are not ready to pay cash for either. A fantastic use of charge cards is in emergency cases, such as auto repairs. Be wise about what you put your good credit towards.
- be certain you recognize the credit terms.
Not all cards will be the same. They each had prtship different terms which include Interest rates, annual fees, and changes made to the conditions. Always know what you are signing.
- Carry just one charge card.
Having more than one can not only get you into serious debt, and possibly poor credit, but they may also be tricky to manage. Having one card will better allow you to make your payments in time and build good credit.