A Whole New Level of Responsibility: Handling a College Credit Card
When a student goes off to college, a whole new world opens up to them. A world
of complex issues and social debates. Living on their own for the first time
can be tough, and it may be especially tempting to lay your hands on a credit
card. Images of "free money" often flash across the minds of young adults when
they hear the words "credit card". However, this is simply not the case. Credit
cards mean responsibility, especially for college students for whom it may be
the first time handling their own money. Even though all of this sounds
negative, having a college credit card can be extremely beneficial.
What Are the Benefits of Having a College Credit Card?
College credit cards open up new opportunities for spending for college
students. This can be both good and bad. Purchases are much easier. For
instance, you don't have to go to the ATM to get your cash, you can just swipe
the card and you’re good to go. You can buy things off the internet, and you'll
begin to build your line of credit. This is crucial to do during your college
years. Once you're done with school and move into an apartment, you’ll need
good credit. If you need to buy a car, you need good credit. You can see the
trend here.
Be Careful With Your College Credit Card
Most likely, the college credit card you apply for, will be the first thing to
ever land on your credit report. Because this is your first venture into the
world of credit, interest rates will likely be high. However, after you build
up a track record of being able to pay on time every time, those rates go down.
Avoid cash advances and paying late. These cost you a pretty penny in the long
run and can make your rates even higher. Try to pay off your balance every
month. The finance charge on the unpaid portion can be steep, so it’s in your
best interest to pay off your debt each month. Remember: your college credit
card does not equate free money. Only spend as much as you have in your bank
account, except in emergencies. If you stick to this rule of thumb, the
experience of having a college credit card should be a good one for you and
your future.