Money Management Tips – What Students Need To Know Before Applying For A Student Credit Card
The article below is from a series of money management articles, videos and tips about College Student Loans …
Before you go and decide to apply for a credit card to purchase those new clothes, you should take a step back and carefully think about your purchase. Being away from home at college is a liberating time. You are surrounded by exciting people and many new opportunities and have a new set of responsibilities placed onto your shoulders. Applications for MasterCard, Discover and Visa credit cards are all around you. The mantra of “buy now, pay later” echoes through the halls.
Instant approval credit cards may be a godsend when you find yourself desperately needing school supplies or in need of the basic essentials. However, almost always, the ease and conveninence of applying and getting a credit card can lead to overwhelming financial problems. Student credit card debt has spiralled out of control. Students are flooded with bank credit cards, MasterCard or Visa credit card offers and many do not consider the consequences of how easy it is to abuse their use.
No one doubts that higher education is costly. Tuition, room, board and associated expenses can deplete savings accounts very quickly. As a student, you may have such a demanding class schedule that working a part time job is just impossible. This is especially difficult if you are also enrolled in school activities, such as sports or academic organizations. Most parents simply can’t afford all the extra costs incurred by student life, not to mention if there are other non-curricular expenses and luxuries wanted.
The key to understanding how to use a credit card, is one based on “need” only. Most students must have some form of cash reserves in case of an emergency and it comes down to the student knowing the difference between an emergency and a simple desire. Apply for a credit card and when it arrives, put it aside in case of real emergencies. Do not go around applying for every credit card offer sent to you. Pay careful attention to the interest rates and any associated fees that the lender requests.
Apply for a credit card and use it with great caution. Do not continuously apply for those college student credit cards just because you can get discounts on your purchase. Eventually, you will have to pay back the balance and you may not have the credit available in the event of a real emergency. Try to remember that going out with your friends for a night on the town does not qualify as an emergency!
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