Congratulations college freshman! You're about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.
One thing they may have not warned you about is how quickly you'll be bombarded with credit card offers. You'll find them in your textbooks, in your mailbox, and on every campus bulletin board. You'll be offered free DVD's, t-shirts, music downloads, and more in return for completing an application for credit.
Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD's, cigarettes, books, etc. - those small purchases can add up quickly.
Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.
Here are 7 tips to help you manage your college credit card needs:
1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.
2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.
3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can't pay off the balance, always make more than just the minimum payment.
4) Pay your bills on time, otherwise you'll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.
5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.
6) Less is better. You don't need more than one or two cards at the most. The more you have the more tempted you'll be to use them or to "max" them out.
7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.
Using a credit card is a big responsibility whether you're a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.
© 2005, http://www.yourfreecreditreportnow.com
Autho
r: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other bonuses by visiting http://www.yourfreecreditreportnow.com
Identity theft is the fastest growing crime according to the... Read More
A check can be considered bad if it is bogus... Read More
You've probably never heard of Frank X. McNamara, but he... Read More
No doubt, you've probably gotten literally hundreds of credit card... Read More
Because most of us have one or two credit cards... Read More
You've just received a "pre-approved" credit card offer in your... Read More
With prepaid credit cards, you get the practicality of plastic... Read More
Credit Scores That HurtIs your credit score being held against... Read More
As of Thursday, December 1, 2004, one-third of Americans will... Read More
Companies that issue credit cards want to make a profit.... Read More
There are three major factors that affect how much you... Read More
About Search Entries:Every time a lender checks your credit history... Read More
The Credit Report is like your scorecard in the lending... Read More
A lot of people have bad credit. It is unfortunate... Read More
By far the greatest invention the banks have ever come... Read More
The recent security breach at credit card processor CardSystems Solutions... Read More
Introduction In this article, a presentation is made of the... Read More
Here are some useful credit card tips for you to... Read More
Identity theft is when someone uses, without permission, your personal... Read More
Rewards cards have become the latest rage in the credit... Read More
Credit Cards and Loans sounds like just two things, but... Read More
In addition to the APR (annual percentage rate) and the... Read More
Credit card debts problem is extremely common today. It is... Read More
A credit report is more than just a snapshot of... Read More
What Are Possible Signs of Fraudulent Transactions see at Web... Read More
Most consumers are aware that they have something known as... Read More
When you are deciding what type of credit card to... Read More
Making Your Credit Rating Work For YouOne of the basics... Read More
Fact: Over 150 million Americans have credit report with the... Read More
If you opened a credit card statement recently and were... Read More
I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!Note: The... Read More
Your credit score can either haunt you or reward you.... Read More
It is a well-publicized fact that more of us are... Read More
A credit report is basically a file about you kept... Read More
If you are married, establish separate credit accounts.Try to finance... Read More
Let's face it, if you are facing the possibilities of... Read More
You're interested in getting the best credit cards for your... Read More
If you're a college student, you probably already have a... Read More
Identity theft has become an epidemic. Millions and millions of... Read More
What is a balance transfer ? A balance transfer can... Read More
Credit cards represent an important part of our financial lives.... Read More
Believe it or not, the way society, especially the commercial... Read More
Today, credit is an indispensable part of our lives. In... Read More
When I received my first credit card in the mail... Read More
So-called "credit repair" companies claim they can remove negative information... Read More
With so many low interest credit cards on offer, how... Read More
Just when most people finish with school and can stop... Read More
A bad credit history can sometimes seem like a curse...... Read More
Credit card consolidation is a popular solution for those with... Read More
Identity theft is the fastest growing crime according to the... Read More
Whether you are aware of it or not, credit bureaus... Read More
I remember back when I was 18 and completely oblivious... Read More
Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More
The Fair and Accurate Credit Transactions Act, signed into law... Read More
You've just opened your credit card bill and attached to... Read More
Until recently lawyers for victims of credit damage had little... Read More
Identity theft is the fastest growing crime in America, according... Read More
If you want to enjoy your life out of spending,... Read More
I didn't think it was possible. But it is. Folks,... Read More
Many employers are now looking at an applicant's credit report... Read More
Many companies use the slogan "Bad Credit? No Credit? No... Read More
For all people shop around for the best rate, there... Read More
Virtually all consumers will have a credit card at some... Read More
How Lenders Operate ? And How They'll Make a Tidy... Read More
As you probably know, interest rates are at all time... Read More
A credit report is more than just a snapshot of... Read More
Credit |