Every college student should know the top 7 credit card tips to keep them from landing on a pile of debt after walking across the stage and graduating from college.
Most kids don’t go to college with a lot of money, and many students use credit cards to make it through the four years of tuition, book fees, dorm fees, ramen noodles, and mac n cheese.
However, if you apply these seven tips when using your credit cards, you can save yourself and your parents a fortune after graduation.
UNDERSTAND HOW OPENING A CREDIT CARD AFFECTS YOUR CREDIT:
Each time you apply for credit, a hard inquiry is recorded on your credit report(s). As a result, you should restrict the number of credit cards you apply for simultaneously.
One or two credit cards are sufficient for a college student. However, owning more than two credit cards creates a temptation to overspend and make unnecessary debt.
LEARN EARLY ABOUT THE IMPORTANCE OF GOOD CREDIT:
The earlier you learn about building your credit, the better. Finances are a vital piece of your life as a college student, both in school and after graduation.
Unfortunately, with so many conflicting goals, it’s all too easy to miss out on the value of your credit until it’s too late. So, a good thing to do is first evaluate your credit profile.
The three major credit bureaus where you can access this information are:
Your credit mix also influences your credit score. Credit scores range from poor, 300 to excellent, 850.
CHOOSE YOUR CREDIT CARDS WISELY:
All credit cards are not created equal. There are a variety of college student cards available, each with its own set of incentives for various types of students.
In addition, some cards have lenient credit history requirements, allowing you to qualify even if you have no credit history.
KNOW WHAT CREDIT CARD FEATURES TO AVOID:
Cards with yearly fees often demand considerable spending to offset the cost of top benefits like annual travel credits. As a result, they aren’t the best choice for college students without a steady income.
To truly gain the value of the incentives offered, you must pay off your credit card amount in full each month; otherwise, the benefits are offset by the interest you owe. Credit cards are infamous for charging high-interest rates if you carry a balance from month to month.