Going through college is definitely fun and also challenging. Should it be your freshman year in school or your final year, you in all likelihood have a few anticipations regarding how matters will pan out. Newcomers perhaps fearing the notorious hardship associated with going through higher education. While the heavy weight seniors are glad to be much closer to graduation and will look with great anticipation to at last acquiring an academic degree.
It’s in all likelihood harmless to indicate that as a student you are not considering on piling up numerous credit card debt while studying at the university year after year. Regrettably, that’s precisely what happens to lots of university goers.
The medium credit card debt for university students is over $4,000, as shown by the study performed by Sallie Mae. Over 80% of university students use at minimum a credit card, and the mean balance for these students are over $3,000 as reported by the research.
Whether you have yet received an offer for a credit card whilst at school, probabilities are you’ll soon be offered one. Over seventy five percent of university kids state that credit card firms have advertised by placing various tables alongside or close to the universities as indicated by a study conducted by the US Public Research Group.
Although receiving a free electronic gadget for simply signing up might appear as a good bargain, be aware that your credit card application would impact your credit report. Credit agencies go after recent credit applications because it is considered to be a part of their reporting operation.
Should you need to obtain a credit card for school, take note of the following:
* Take a look at your credit report as well as your score. There are various websites such as this one that allow you to grab your credit score for FREE, and thus be sure to take advantage of these free services. You need to familiarize yourself with your credit score and learn how and what can impact your score and how the agencies calculate your score.
* Be on your guard in regards to various credit card offers. Make certain you fully comprehend the terms as well as conditions that would be applicable to your credit card. The 0% introductory rate for the full year is a bribe to bring you on board as the rate will soon hike up to as high as twenty or even more if you fail to make a payment on the due date
* Open up a checking account as soon as you get a chance or you can open a joint account with your parents. You will be using this checking account to pay your credit card dues and payments. For your convenience you should setup online access to your account so that you can manage your account from the comfort of your room without the need to go to your branch. It will also give you quick access to check your balances from your computer. You may also wish to setup automatic payment so that you are never charged a late fee and your credit score remains clean.
* Do not pay with your credit card for small items or everyday use. For instance, it is acceptable to utilize your card toward a purchase of a computer since it would provide a way to break down the large sum to smaller and easier payments that you can manage over time. However, it is not wise to take out your credit card for buying a gum or soda, or a bagel. Money management and wise spending prevents you from falling into credit card debt.
* Avoid the temptation to purchase items on your credit card for which you can not pay for it in a couple of months. Remember the longer you keep a balance on your credit card the more you pay. Just because you have a card, it does not mean you should use it to purchase items that are not affordable according to your financial situation. You will have to pay the money back or your will fall into debt and end up with poor credit rating.
If you act responsibly and wisely, you can take full advantage of all the benefits associated with having a credit card and it can be of a great use to you while going through college.