With a lot of promotions and marketing strategies credit card companies create nowadays, it has become more enticing for students to apply for credit cards. Although a huge market exists for young professionals, more and more first-time applicants start are coming from the non-working class. Here are tips on how you can manage your card and build a good credit history if you’re a student:
1.Choose the most affordable credit card.
Don’t apply for a student credit card as soon as a sales officer approaches you or because of the freebies and promotional items involved. Remember that you will be paying monthly charges and additional fees that apply when you start using it. Therefore, you should do your research first, compare credit cards from all banks, and choose wisely based on the charges, interest rates and credit limit. As a student earning a limited amount of income which you have to divide between daily expenses, tuition fees, and other educational fees, pick cheaper alternatives that waive annual fees; offers the lowest transaction charges, and preferably with a lower credit limit.
2.Set aside an emergency fund.
Setting aside an emergency fund will help you get used to the idea of saving. Try to save ten percent of your income and set it aside for your emergency fund. Doing so will mean having extra cash in your hands which you can use for emergency purposes including accidents, sudden expenses, house repairs, sickness and hospitalization costs, educational trips and projects or even to help you in your monthly credit card bills.
3.Pay more than the minimum payment every month.
A good way to lessen your financial worries and sleep better at night is to make full balance payments whenever you can. If you cannot, then try making at least more than the minimum balance payment your credit card company requires. Paying your debt in full and on time frees up the money you have for other more important expenses.
4.Don’t let anyone else use it.
Having your own credit card means that paying for the monthly charges is your sole responsibility. Better to refrain in allowing friends to use it to prevent future problems that may arise when your friends refuse to pay, or take time to pay for it. Credit card payments have a deadline every month. Regardless of who used it, if it’s under your name, it’s your job to make sure that it gets paid monthly, lest you suffer from late payment charges.
5.Use student loans for education purposes only.
When you apply for a student loan, make sure to use it to purchase educational tools or to pay for educational expenses such as tuition fees, transportation and dormitory rent only. It is important to borrow only the amount that you need instead of using student loans for buying luxury items such as cars and other gadgets you don’t really need.
Master all these tips for in order build up your credit history while you are still studying. When you can control your spending, you will find that your credit score will increase, and you will be able to apply for bigger expenses in the future such as a car, a home, or other dream items you want that the best credit cards can give.
1.Choose the most affordable credit card.
Don’t apply for a student credit card as soon as a sales officer approaches you or because of the freebies and promotional items involved. Remember that you will be paying monthly charges and additional fees that apply when you start using it. Therefore, you should do your research first, compare credit cards from all banks, and choose wisely based on the charges, interest rates and credit limit. As a student earning a limited amount of income which you have to divide between daily expenses, tuition fees, and other educational fees, pick cheaper alternatives that waive annual fees; offers the lowest transaction charges, and preferably with a lower credit limit.
2.Set aside an emergency fund.
Setting aside an emergency fund will help you get used to the idea of saving. Try to save ten percent of your income and set it aside for your emergency fund. Doing so will mean having extra cash in your hands which you can use for emergency purposes including accidents, sudden expenses, house repairs, sickness and hospitalization costs, educational trips and projects or even to help you in your monthly credit card bills.
3.Pay more than the minimum payment every month.
A good way to lessen your financial worries and sleep better at night is to make full balance payments whenever you can. If you cannot, then try making at least more than the minimum balance payment your credit card company requires. Paying your debt in full and on time frees up the money you have for other more important expenses.
4.Don’t let anyone else use it.
Having your own credit card means that paying for the monthly charges is your sole responsibility. Better to refrain in allowing friends to use it to prevent future problems that may arise when your friends refuse to pay, or take time to pay for it. Credit card payments have a deadline every month. Regardless of who used it, if it’s under your name, it’s your job to make sure that it gets paid monthly, lest you suffer from late payment charges.
5.Use student loans for education purposes only.
When you apply for a student loan, make sure to use it to purchase educational tools or to pay for educational expenses such as tuition fees, transportation and dormitory rent only. It is important to borrow only the amount that you need instead of using student loans for buying luxury items such as cars and other gadgets you don’t really need.
Master all these tips for in order build up your credit history while you are still studying. When you can control your spending, you will find that your credit score will increase, and you will be able to apply for bigger expenses in the future such as a car, a home, or other dream items you want that the best credit cards can give.