Using a Student Credit Card Responsibly |
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No matter how old you are, a credit card will mean trouble if you're not educated on the subject of personal finance, budgeting, and the proper use of credit. If you have not been taught this as a teenager, then as a young adult it is about time that you teach yourself. This means taking a personal finance class that is offered at your college or reading everything that you can get your hands on about personal finance. Since you have likely never supported yourself before, without the assistance of your parents, it is important that you get this education before you obtain any student credit cards.This is a time of many brand-new things, and it may be tempting to pull out that credit card for anything and everything, without considering whether or not you can afford it. There are many tainted credit reports that began to go downhill with a student credit card. Once you know about personal finance, budgeting, and the proper use of credit, you must then decide whether you think you are responsible enough to handle a student credit card. If you have a history of making choices before you have considered the consequences and potential ramifications of your actions, then a student credit card may not be wise for you. On the other hand, if you have a history of using money responsibly as a teenager, and even happen to save up some money that you earned while in high school, then a student credit card may be great for you. As a teenager, the fact that you can be responsible enough with money to put it away in a bank account and not spend it shows that you can handle your own personal finances like an adult. You may shy away from credit cards because of all the bad things you've heard about people getting themselves into debt, however, many people use credit responsibly and are able to maintain a good credit history. In today's world, having a good proven credit history is a must -- and to do this you must have credit cards or loans. Without a credit history, getting things like a mortgage will be nearly impossible. Whether you know that you can be responsible with a student credit card or not, if you do decide to get one you need to educate yourself on the proper way to use a credit card. This means not allowing any late payments to be recorded on your credit history, paying as much on the card as you can every month, and watching the utilization on your card -- since a high balance can lower your credit score until it is paid back down to an acceptable level. There are many resources out there, on the Internet and in books that can teach you about these proper uses -- so that you can use your student credit card to your advantage and build up a great credit history that you can take into your adult years. |
