FINANCIAL FREEDOM

So, you’re a student attending college, and you’ve been tempted by the idea of credit cards. Nothing unusual there, most of us from all walks of life have the same temptation. The difference for you the student is, as you’re just starting out, the way you deal with credit now can affect you in many ways, for a long time into the future. In years to come you may need a mortgage, a car, etc, and establishing a good credit record now will be very useful. These days your credit history can even affect the way potential employers look at you.

For a lot of young people getting a credit card when they have no credit history is nigh on impossible, but fortunately college students are in a better position. They are seen as less of a risk by the credit card companies than certain other groups of youngsters, and so are more likely to be offered a card. Using this first credit card responsibly is extremely important.

The reason you have to be careful is that your use of the student credit card is monitored very closely by the issuing company and the credit bureaus, and because you don’t yet have a good credit history behind you, any slip-ups like late payments etc are viewed rather seriously. So, it is absolutely vital that you make at least the minimum payment every month. Even better, if you could manage to pay a bit more than the minimum each month then that would stand your account in very good order.

As it’s your first credit card, you will probably be paying a high rate of interest. This is why it’s important to use your credit card wisely. Once you are viewed as a responsible user of credit, you should be offered credit cards with much lower interest rates. Also, further down the line you will be able to attain better deals from the aforementioned mortgage companies, loan companies, etc.

If you take liberties and misuse your credit during your college years, then you could well live to regret it. Never mind the scary tales of students getting into trouble with credit cards, if you have some common sense and a bit of self control you should definitely get yourself a credit card and start building that credit.

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