Think that you don’t need a credit card until after college? Think again, because it might be more beneficial for you to start using one before you graduate. Here’s what you need to know about student credit cards:
1. You need to adjust your spending habits.
Healthy spending habits should begin before you even apply for your first credit card. In fact, you should find other healthy ways to build your credit score before adding a card with a sizable limit to the mix. Some cards even offer sizable sign-up bonuses if you’ve established good credit before applying.
When you have a credit card, you need to make sure that your spending habits don’t get you into trouble. Many people mistakenly think that a credit card is a path to a free line of credit. Before they know it, though, they’ve racked up a massive amount of credit card debt and have found themselves in serious financial trouble.
The good news is, it’s easy to incorporate a credit card into healthy spending practices. Make sure that you hit hit all of your monthly repayments on time. You should also aim to pay more than the minimum so you can keep your interest low and your incentives in place. It’s possible to repair your credit file if you cannot keep up with your balance when first starting out, but it’s wise to keep on this with at least your minimums; one small chunk at a time.
2. A credit card teaches new responsibilities.
Many people shy away from using credit cards because they think that the cards will land them in debt. However, anyone with a sensible head on their shoulders should be able to manage their credit card perfectly. You are probably going to take out a credit card at some point in your adult life, so you should learn how to handle the responsibility as soon as possible.
College is the first time in your life when others treat you like an adult. Learning how to handle a credit card is part of the learning curve of adulthood, so you should jump into the world of credit cards as soon as possible. Learn when to wisely use your credit card for purchases like groceries, and when to avoid like a night out.
3. You can use your card to enhance your college experience.
Many students love to travel, but most students have too little money to really see the world, even if you work out the perfect budget itinerary. A student credit card can really help you out with your travel plans. A student card can give you the opportunity to find inexpensive flights to far-off places, even if you don’t have one of the better card options.
However, when you travel outside of the country, research the international credit card rules. You don’t want to get hit with a huge transaction fee from using your card in a foreign market, especially if you are trying to save money on your travels.
Having a credit card as a student can be a bit of a risk if you aren’t ready to take on the responsibilities of owning one. However, it can also give you some key insights into adult life and can help you learn about financial skills. Additionally, you can use your student credit card to be able to work towards the trip of a lifetime. Take a look at what credit card deals are out there for you, and try out a student credit card today.