Finances are an essential part of a student’s school life, whether in their first or final year. However, there are so many priorities in life that contribute to overlooking credit card importance amongst students.
Finding the ideal credit card for college students can be challenging as you have to consider several factors before choosing. But don’t worry! Here are 6 tips for finding the ideal credit card for a college student.
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1. Pay Credit Card Bill on Time
Paying your card on time will create convenience for you and help you avoid improving your credit score. To ensure you don’t forget to pay your monthly bills on time, including your credit card, activate all the bills from the bank to be paid automatically on the set dates.
2. Live Within your Abilities
Always ensure that you spend what you can comfortably pay at the end of the month. The fact that your card allows you to pick goods on credit doesn’t mean you can use it to buy goods beyond your means.
You’ll only be adding trouble and stress to yourself at the end of the month. Avoid living above your means for smooth college life.
3. Avoid Certain Card Features
Not all features in your credit card are important, especially when you‘re a first year student. Some cards have annual fees that require high spenders to gain the added cost – they are not suitable for students. Again other cards have high-interest rates which makes them not favorable for college students, but you can try to compare credit cards to see the difference.
4. Don’t Share Your Card
Mixing friendship with finances is the start of your downfall. Ensure you don’t disclose information regarding your credit card to any of your friends because, for any transaction they make using the card, it’s billed on the card owner and not “friends.”
5. Maintain Low Card Limit
When applying for a credit card in your bank, you’ll be asked to fill and sign your preferred limit. Ensure you stick by it to reduce the stress of over the limit fees.
The dangers of spending beyond your limit are that your card starts accumulating fees that are very expensive and hard to clear. Try to maintain charges, not above 30% of your card limit. You can also avoid doing unnecessary shopping and less travel.
6. One Card Is Enough
As a college student, one credit card is enough! Before you open your first card, ensure you research its effects on your credit score.
It’s worth noting that for every new card you open, an inquiry is listed on the credit reports, and it causes an immediate drop in your credit score.
Again, when you have more than one card, you are at higher risk of taking up more debts, which may stress you.
Finding the ideal credit card for college students can be a daunting experience, especially for beginners. As a student, you have to consider a few tips to ensure you get the best card for your entire college life.
Once you open a credit card, it will live to reflect on your credit score even after college. Ensure you pay your monthly bills on time to avoid a bad financial reputation that can hit back at you later in life.
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