Building Credit for your Student

A recent study conducted by the Georgetown University Credit Research Center shows encouraging results about students and student credit cards. According to this report, 87.9 percent of students in college manage their student credit cards effectively.

Unlike in the past years, this study has proven that college students are now more aware about their responsibilities as credit card holders and this is shown by the fact that most college students pay off their monthly balances in full. Overall, the average balance in a college student's account is $552 which is just one third of the average balances of the general population.

More on Student Credit Cards: Your Companion In Your Studies

Are you planning on applying for a student credit card too? Do you already have a credit card in your name? Whether you're a student or a first time credit card holder, let this article give you some tips on how you can use your credit to your most benefit.

Read your credit card agreement.
In building credit for student is your first time, make it a habit to read the fine print before signing up for anything. What you see in the ads are only the best features of the credit card, the actual conditions are explained in the Agreement and it is up to you to find out.

Set your monthly budget.
As a student, practice effective budgeting or money management starting now. This will greatly help you in handling your finances in the future. Set a definite amount for you to spend each month and make sure that you have enough to set aside for your debts, credit card payments and for your savings.

Pay off your credit card balance in full each month.
Make it a point to pay back your monthly credit card balance in full to avoid paying the interest. What matters most in building your credit history is how you use your available credit and how timely you are in submitting your payments.

Stay within your credit limit.
Staying within your credit limit means more than just not going beyond your allotted credit. Financial advisers recommend not using more than 30% of your available credit if you want to keep your credit history in excellent standing. This habit will not only protect your credit history, it will also protect you from the risk of incurring more debts than you can afford.

Check your credit card statements regularly.
It is your obligation as a credit card holder to check the accuracy of your account statements. If you find errors or unauthorized charges in your account, call your credit card issuer immediately. If your credit card company provides online access to your account, take advantage of this feature by checking your account on a daily basis. Doing so will also alert you about your due dates of payment.

Use your credit card with caution.
Credit cards are meant to be financial tools when you need them. Nevertheless, credit cards are not supposed to be used without careful consideration. Before charging a purchase to your credit card, ask yourself, do you really need to make this purchase? Can you pay back your balance by the end of the month? Is it a necessity or just a want? How will this purchase effect my monthly budget?

The Federal law doesn't provide any restrictions about issuing credit cards to minors. In fact, credit card companies consider teen-agers as a very profitable market. Most credit card companies often require a co-signer when a minor applies for a credit card. When a teen-ager reaches the age of 18, he has the right to sign-up for a credit card on his name even without a cosigner.

Are Student Credit Cards an Advantage?
Some parents feel that providing their kids with credit cards while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.

More on Credit Cards and High School Students

We have already discussed the benefits of owning a student credit card as well as the factors to consider when choosing student credit cards. But apart from the advantages of college student credit cards, let us also consider the dangers associated with the misuse of credit cards.

Parents and guardians play a big role in helping young people become aware and understanding the dangers of using credit cards. Hopefully, by being aware of the risks, these young people can avoid the pitfalls that lead to bad credit and high credit card debt. If you're a parent or a guardian, here is how you can play your part.

Teach students to watch out for the wrong credit cards. With so many student credit cards offered in the market, students need to be very particular and careful about which credit card they choose. Let them be aware that some advertisements may be just propagandas meant to trick consumers into believing that a credit card is worth owning. Remind them that not all credit cards are the same and some may even take advantage of their inexperience.

More on The College Students Guide To Using Credit Cards Wisely

Choosing a major is a "major" decision

Since you have to invest several years of your life in studying a subject in great detail choosing a major in college is the most important decision. The major you choose can dictate the scope of your opportunities or your career path. Choosing a major is not a decision that should be made in two hours, two days, or even two weeks. So take your time and research. Research all your options and keep an open mind. Once you've narrowed the list of majors and careers that seem interesting, try each of them on for a while.

Questions to Ask before you Choose a Major!

Sometimes you may be very fascinated in a major, but you find that you don't have enough skills to pass the required courses. On the other hand, you maybe have a skill in a particular field, but you have no interest in that area. Sometimes, you may have both interests and abilities in an area but find that the realities of the job market are such that you are not willing to risk an investment of time and money on potentially bleak employment chances.

Here are the questions you need to ask yourself before you choose a major!

-What are my interests and what fascinates me?

-What are my motivations?

More on Guide To Online Education

How To Cancel Your Student Credit Card

If you're a student and you find yourself having trouble juggling between your credit card payments, it's probably time for you to consider canceling some of your credit card accounts. However, before you call up your credit card issuer to close your account, there are some things you should carefully consider. Let's discuss the correct steps of canceling an unwanted credit card.

Read More: How To Cancel Your Student Credit Card

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How Many Credit Cards Should You Have When You Are In College?

Many credit card companies send invitations to young people, especially college students since this is the time they need to establish their personal credit. There is nothing wrong in getting your own student credit card as long you're ready to take on your payment obligations. But the question is, how many credit cards should a college student have? Why are young people encouraged to limit their freedom in obtaining student credit cards?

Read More: How Many Credit Cards Should You Have When You Are In College?

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The Student Credit Card Trap

Each year, credit card companies send thousands of advertising mails to prospective cardholders. Young people or college students are strong potential market. If you're a college student and this will be your first time to own a credit card you may be tempted to sign up with the first great offer that comes your way. Nevertheless, before you fill out that student credit card application, read on and see what you're missing.

Read More: The Student Credit Card Trap

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The Role Credit Cards Play on Students

Studies on consumer credit card use reveal that a large percentage of credit card debt involves student cardholders. In response to the growing cases of bad credit and bankruptcy, schools and finance help groups aim to help students stay away from debt crisis through college credit education.

Read More: The Role Credit Cards Play on Students