Use A Credit Card Only For Emergencies

Category: Finance, Credit.

Student credit cards can be a blessing or they can be a curse- it s all up to you!

But if they re not used responsibly, the debt racked up can really be quite a burden when the carefree years of college are finally over and the real world begins. Student cards are fantastic for making college purchases more convenient, making travel much easier, and for covering those emergency situations that just pop up from time to time. And post- college debt really can be painful indeed. This makes getting an apartment, getting auto insurance, buying a car, and even getting a job a lot more difficult. Chances are that with lots of outstanding debt and not so much black ink on the income side of things, credit scores are also going to be less than excellent at this time. Yes it s true- these days, most employers do take a look at your credit score as an indicator of what type of employee you ll likely be.

Here are a few pointers to help you get started off on the right foot. The good news is that avoiding student credit card debt is not hard to do at all! Use a Credit Card Only for Emergencies. College students have gotten by for years and years without using credit cards at all. I know this sounds tough, but it is entirely possible. There s no reason why the responsible student today shouldn t be able to get by with only using their credit cards for emergencies and other times where it s really the only option.

This is essential. Pay it Off On Time. Pay it in full if possible to avoid any balance at all. Late fees and other additional charges that come when a payment is late or missed are very punitive and compound incredibly fast. However, even if you can t quite swing the full amount right now, it s imperative to at least pay the minimum before it s due. Use Your Discipline.

Being disciplined with a student credit card might mean asking yourself each and every time you plan to use the card, "would I spend this money or buy this item if I weren t putting it on the credit card? " If the answer is no, then that should tell you something. Taking total control with your financial life is easier and much more rewarding than letting things spiral recklessly out of control. Plan to Pay Down the Balance. Believe me, it will be even harder at that point than it will probably be now. Even if something happens and you can only cover the minimum payment when it s due, don t just settle for letting the balance rack up to be paid after college. Find a way to make a few extra bucks now and tackle the balance before it grows out of hand.

Take action now to avoid student credit card debt along with the problems it brings later in life!