While you are in college, it is obvious that you are most likely going to be tight with money. In fact, often times you will not have enough, even with your penny pinching ways. So where do most college students turn other than to credit card companies who stand ready and willing for them to fill out the application and get started on their credit spending?
A credit card, though such a small piece of plastic, can determine, in the future, whether you will be crying over a paycheck that just isn't enough to pay your bills or if you receive that check with a sense of accomplishment, and a little extra money to put into your pocket after you have paid off your credit card bill yet again. What do I mean? Spending with credit cards can either get you into debt that you cannot get out of, and that you will spend the rest of your life worrying about and paying for, or it can help you build your credit score and give you the great opportunity of spending money you need but don't have right now and paying it all back later. But what are some of the things that college students, as they begin this life journey, should know about credit cards so that they can steer clear of the stress of excess debt?
The thing you need to know most when it comes to credit cards is that you need to know about credit cards. Confusing? You have to know exactly what conditions on which you are agreeing when you apply for a credit card, what kind of fees you will be charged, and the penalties you may receive for things listed in the fine print of the credit card application. Knowing what you're getting into is essential BEFORE you apply, rather than after.
When you have a credit card, it is important to take into consideration that, if you are applying for a job, you can either make or break the decision that the potential employer is considering just by your credit score. When you use your credit unwisely, your credit score goes down. Many employers will look at your credit score and base your reliability on that very score. So it's important to know that there's a lot more to life riding on how you manage your credit cards than you think.
College students are at a higher risk of maxing out their credit cards because they are often in such a need for money that they may push the limit to get it, whether it is good for their credit score or not. Maxing out your credit cards is a huge mistake, because it can not only lead you into debt that you most likely cannot handle, but it can damage your credit score, if you do it to much, to the point where you cannot easily get credit anymore.
