Common Credit Card Mistakes by Students

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					                                                   Presented by Daniel Toriola

   Credit cards are very useful. Normally there is no requirement of any collateral, and the amount of credit is fixed
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                                                 person’s credit score.
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                                            Common Credit Card Mistakes by Students
                                                                    By Tom Tessin

   Mistakes are common as with the use of student credit cards. As a student, you might lack the
proper knowledge about how to use them. Due to freedom of spending, students often cross their limits
and end up accumulating huge debts.

 You may fall for any loan offer, which might seem helpful in the beginning. However, if you default on
the loan payments, the credit card issuers might take advantage by levying a higher rate of interest and
penalties. Hence, students need to be careful regarding the use of credit cards and avoid possible


 1. Giving in to a credit card promotional offer: You may come across many student credit card offers in
your college days. These offers may sound interesting. However, it is advisable you think twice before
you finalize any credit card offer. Do not go for a credit card just by promotions made by the credit
issuers. It is necessary to read the offer terms and conditions carefully before agreeing to any credit
card offer. Look for the charges and check whether affordable or not. This is what students fail to do,
and thus commit the mistake of finalizing a credit card without proper research.

 2. Not deciding before signing on the dotted line: It is recommended you bear a few things in mind
before you actually sign on student credit card application. Read the document properly for monthly
payment, basis of payment, penalties on late payment and the hidden charges. To confirm this,
students may ask for the website address from the credit card issuer to learn more about the credit
card rules and regulations. This way you save yourself from committing a grave mistake.

 You may search for websites that post reviews on credit cards. Here, you may find a pile-up data
regarding many credit cards available with issuers apart from the features. Through the choices
available, you have the privilege to compare them. To save yourself from any problem, while applying
for credit card for the first time, seek help of existing credit card users. Search for people in your family
and relatives, who are well aware of such credit cards and their use. Simultaneously, seek help of a
professional financial consultant.

3. Fully exhausting the credit limit: The credit limit for students is usually high. However, students need

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                                              Presented by Daniel Toriola

be careful not to overuse the credit cards. Whatever the credit limit may be, maintain the balance
below 50% of it. If you fully use up the credit limit, it will badly impact your credit history. It may become
difficult for you to discharge all the dues on time. Avoid this biggest mistake, while using student credit

 4. Not making timely payments: The worst mistake of all is skipping the monthly payments. If you do
this, the credit card issuers might increase the Annual Percentage Rate (APR), impose penalties and
deprive you of rewards. It might just become difficult for you to maintain your credit, hereafter.


 Student credit cards help you to establish a sound credit history, so you are responsible in handling
your personal finances. Hence, avoid these mistakes to make the most of student credit cards.

Find student credit cards and more of Tom's work at

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Find out how to avoid making common costly mistakes during divorce and save thousands of dollars.
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                                          Presented by Daniel Toriola

                                            Student Credit Card Mistakes
                                                      By Tom Tessin

Students are often prone to fall under huge credit card debts due to some common mistakes done with
credit cards for students. Below are some of the common mistakes that students usually make with
their student credit cards.

Students make many mistakes while choosing student credit card. For instance:

Instant sign up for the first card offer:

 This is the most common mistake that most students tend to commit. As they step into college, they
get many credit card offers from numerous credit firms. If you are not serious about this and just sign
up for the first credit card offer, chances are more to lose those good offers coming after a while. Thus,
wait and look out for some reasonable offers.

 Often, students are attracted by a card offers that offer goodies such as t-shirts, video games, and
DVDs. Always try to avoid committing this mistake. You need to understand that these goodies are just
promotional offers that hardly ever resist. Hence, always sign up after comparing and reading the
terms and conditions of at least three or four credit card companies thoroughly.

Using Beyond the Credit Limit:

 This is another common mistake. Often, these credit cards come with a huge credit limit, but this does
not imply to spend your entire credit limit. It is important to keep the credit card balances always below
50% of the total credit limit. If you make use of the entire credit limit on expenditures, it may reflect on
your credit report. In addition, you will have a tough time to pay off your balances on time, if you get
into the habit of spending your entire limit.

Irregularity in Monthly Installment:

 This is one biggest mistake, which students do with these credit cards. They ignore their monthly
installments or skip them. In such cases, credit firms either increase the APR (Annual Percentage
Rate), or charge some penalty fees or withdraw all your rewards and exclusive rights. To worsen, they
may even decrease your credit limit. Incurred dues are the common cause of debts due to these credit


 To avoid these mistakes, do not just read the special features of these credit cards. Spend a little time
in reading the terms and conditions found in the respective web site of credit card companies providing
these types of credit cards. This way, you can come to know all the charges and interest rates

 Ascertain those web sites that offer reviews on various credit cards for students. These web sites
collect all college credit cards available in the market along with their exclusive features.

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                                               Presented by Daniel Toriola

If you find difficulty in choosing a best student credit card, seek help of financial consultants, as they
may give you an informed opinion about the best one available in the market.

 Having a student credit card is the first and vital step to build a strong credit history for a student. You
need to make an excellent good credit report, since this helps to make a good impression after
graduating. Hence, remember your responsibilities and avoid making such common mistakes.

Find a student credit card and more of Tom's at

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                                                Presented by Daniel Toriola

Related eBooks:

Student Credit Card Mistakes
Overview of Student Credit Card
Credit Card Mistakes and Students
Avoiding Student Credit Card Debt
Smart Credit Card Habits For Students

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