What you should know about student credit cards...Before you start using a student card, decide what it will be used for. Remember that a credit card limit is not free money. It basically is loan which you have to repay. Start slowly with one card with a low limit and use responsibly. Starting small will help establish a credit history and keep you from getting into excessive debt. Read the fine print and make sure that the card you signed up for is what you think it is. Shop around for the best car for spending and repayment habits. Always pay your installments on time. Make your payment at least a week in advance.
Student credit cards are excellent convenience tool, so try to pay off your total balance each month.
A balance carried to the next month can be very costly. If regular payments are made, you will not get into serious credit trouble. Should you already have significant credit card debt that you cannot pay off immediately, pay more than the minimum payment. Should payments be minimal, your debts will take years to repay. Avoid having multiple student cards, including retail cards. Too many open credit card lines, even if they have zero balances, would be considered a negative mark on your credit report.
Lenders do not like it when you have the ability to quickly incur significant debt. Resist the urge to acquire that freebee by opening another student card. Keep copies of sale slips and compare charges when bills arrive. Contact the issuer and let them know should you be unable to make regular payments. Remember that interest rates can be negotiated with the credit card issuer. Do not let a friend use your student card, you will end up with payments should he/she be unable to do so. Create a budget and credit card recorder in which you document credit purchases.
