Tips for Using a Student Credit Card (PDF) by hashournonos


Tips for Using a Student Credit Card

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Using a student credit card properly is imperative to avoid racking up huge debt. We offer students a few
simple guidelines to follow to ensure responsible use of their student credit card.

student credit cards

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With the plastic era upon us, student credit cards have become a fact of college life. Students can no longer
do without a credit card. Many credit card companies set up stalls within the college campus during the first
semester to lure students. Just like the ordinary card, student credit cards carry a credit limit, a grace period,
an annual fee and overdue charges.

When applying for a credit card, every student must remember that he or she is laying the foundation of his
creditworthiness. The financial reputation thus established will influence future transactions, like an
apartment rental, insurance, car loans etc. Any future cards you acquire will be offered on the basis of your
reliability as ascertained by these records.
Before you apply for a student credit card, check out the annual fee, the interest charge, the transaction fee
and any other charges levied. Credit terms vary according to the issuer. Consider whether you will be paying
off your dues monthly or whether you will pay off purchases over time. To protect your student credit
record, take care to use the card properly by:

Keep track of all charges
Pay dues monthly
Never exceed credit limit
Avoid over-limit fee

If you default and do not pay off your charges, a credit report statement that contains details of your
delinquency will be issued by a credit-reporting agency. Any legitimate business can access this credit
report in the future. But without your prior approval, student credit card creditors, employers and insurers
cannot get these reports. Negative information can stay on in your report for 7 years and bankruptcy can stay
till 10 years. If ever the debt against your student credit card gets out of control, contact the issuer and work
out a modified payment plan whereby you will be able to pay manageable and reduced amounts.
A majority of students use their student credit cards to 'swipe' almost anything without forethought, and
thereby end up still paying off their credit card debts well into their 30s. Undoubtedly, student credit cards
make life easy for the cautious student who shops intelligently and manages money carefully.

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