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Credit Card Tips for Students
Credit Card Tips for StudentsBuilding a good credit score should start as early as college when you become financially independent. However, this isn’t always easy even when it is a necessity. Read on the tips on how to build your credit as a student to secure future financial dealings from utility companies, insurance companies, lenders, etc.
10 Things You Can Start Doing Today to Help
Build Your Credit Score
Choose Your Credit CardWith any other credit card, do your research and compare it to the list of features you want in a card like rewards, interest rates and provider from Visa, Mastercard, Discover and American Express. Moreover, read the terms and conditions of the credit company so you don’t get surprised with charges made on your card when for example you have made a late payment.
Don’t Get Too Many Credit Cards
Applying for too many credit cards make your credit score drop and makes it difficult to pay them thereby, accumulating debt.
Be Frugal
Buy sensibly and do not charge expensive items on your credit card which you cannot pay off. Charging expensive items and not being able to pay them off makes your interest payments accrue.
Pay Your Bill In Full
This is pretty self-explanatory but paying your credit card bills in full when they arrive can help prevent yourself from amassing a massive debt.
Pay on TimeAlways pay your credit cards on time since non-payment sends a signal to credit lenders that you are a risk, which could affect your credit score. This also includes other bills like utilities, library fees and taxes since credit bureaus also check on them.
Have A Savings Account
Do not use your credit card for emergency purposes. Always use your savings account on this so that you do not get debts you can’t even pay off.
Never Make Cash Advances
Besides the interest rate you make for using your credit cards there is also a cash advance fee between 2-4% when you make a cash advance making the interest rate higher.
Have A BudgetStick to a budget and don’t go beyond your credit limit. Going overboard can be costly because credit card companies impose fines. Moreover, going beyond 35% of your credit utilization can lower down your credit score.
Never C0-Sign for A FriendCo-signing can affect your credit score especially if your friend is unable to make payments on his loans. Consequently, you will be asked by the lender to pay for the loan taken by your friend.
Be Responsible
Use your credit card wisely. Never purchase items that you cannot pay and always pay your credit card bill on time or before they are even due.
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