Student Credit Cards

Student credit cards are looked at by most students as an easy way to spend more money. But using every student credit card that is thrown at you does not make much financial sense. Used properly, a student credit card can prepare you for the future and enhance your money management and planning skills.

The Benefits Of Smart Use Of Student Credit Cards

Through proper use of your student credit card, you build good credit history. This is something that will stand by you in the future. A good credit report helps you in future employment, your first car purchase, home purchase, as well as insurance. An intangible benefit of student credit cards is that it helps organize your finances. By being able to see a report of your spending you might realize that your nightly pizza for the year could have bought you your first car. But hey--a student credit card is not about giving up pizza! It is about learning more about where your cash is flowing, which is a very good financial preparation for the future.

Each Card Is Different

When you apply for a college student credit card, be aware that the first one you see is not the same as the rest. Student credit cards differ in many respects. Remember like many other things in life when you get your first student credit card, do not forget about the fine print involved.

Building Good Credit History

Remember that while building a good credit history, you must have an active account. At the same time making your payments on time is important to your credit history. Never go on shopping binges that are going to weigh down your credit card. Instead keep a good account of how and where your money is going.

One way to keep the student credit card account active is to use it to pay your monthly bills. These could be telephone bills, utility bills or any other. Set a monthly expenditure target for yourself and use your college student credit card to monitor that target. You can then reward yourself by making that essential purchase that you always wanted to.

No Income, No Problem

If you handle money intelligently, college can be the perfect time to sign up for your first credit card. They're unique from the standpoint that they don't require you to have a job. No income, no credit record, no problem, you just have to be a student at a four-year university."

The on-campus credit card application tables have become a common sight in many student unions and bookstores. Credit card companies are eager to strike financial deals with colleges that allow them to set up tables filled with eye-catching free swag, luring students with a giveaway coffee mug or t-shirt to sign on the dotted line for a student card. Some states have passed laws discouraging credit card companies from targeting college campuses. Several companies have found success though direct mail campaigns and have abandoned setting up tables on campus. Also, more students are often getting their first cards while still in high school.

How to make credit work for you, not against you

As soon as you get your first credit card or loan, you have entered the world of credit reports and scores. A credit report is compiled by credit bureaus and contains information about your identity and credit relationships, among other things.

Credit scoring is a system that lenders use to help determine your 'credit worthiness.' Credit scores are based upon your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts.

It's vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out CardRatings.com.

Developing a new view about credit

Indeed, some students forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt.

Students that seem to have the most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents' income. Cable television, cell phones with cameras, and new cars become 'necessities' instead of nice extras.

Credit cards...to have one or not to have one....that is often the question faced by thousands of families as their high school graduates have their first experience living away from home. The answer should be carefully thought out by parents and children, alike.

Undoubtedly, there can be many advantages to having and using credit cards. They're convenient. They certainly can be useful in an emergency such as car trouble away from home or medical emergencies. And, when payments are made in a timely manner, they also can help a young person establish a favorable credit history.

Do you understand what credit is and how to use it wisely? Like many of today's teenagers and college students, you appreciate the convenience and relative safety of credit cards. But you probably also know that credit cards can cause serious problems for young people that can plague them for years to come. Knowing some simple "rules of the road" about selecting and using credit cards can help you avoid credit card problems.

If you're trying to teach your teen to handle money or manage it more effectively, your answer may be as simple as whipping out the plastic - not your credit card, but a prepaid cash card.

What it Is and How it Helps

Prepaid cash cards (or stored value cards) look much like a credit card, but these cards must be loaded with money before they can be used to make purchases. That means before your teen can buy those cool jeans that she "just has to have," she must have cash to put on the card. "This can help teens learn the value of budgeting money," says Diane Giarratano, director of education for Novadebt, a non-profit financial management service. It can also be beneficial to parents. "Parents have more insight as to what their teens are spending their money on," she says.

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