Simple tips to use student credit cards wisely

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Simple tips to use student credit cards wisely


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

The age of 18 is when a person is considered eligible to apply for a credit card. Most of them opt for the student credit cards as the first option since it is one of the easiest to obtain without a credit history to your backing. However, once they have the card in their hands, most of them go berserk considering they now have the spending prowess, thanks to the card. By the time they realize their folly, they will have huge debts to repay and no means to do so. If you want to avoid getting into such tricky situations, there are a few points that you need to keep in mind when using student credit cards. You can turn these cards into your allies rather than foes and forge a lifelong relationship without any hassles.

Tip #1: Choose the right card

Banks are trying head over heels to lure students into opting for cards offered by them. You will be faced with so many options that you may get confused about the choice to make. It is wise to go in for the one with the most favorable terms with respect to APR, grace period, fees and promotional offers. Take a good look at the terms and conditions and outweigh the pros and cons of each card before making your final choice.

Tip #2: Don`t opt for more than one card

With so many tempting offers laid out in front of you, you may want to end up with more than one card in your wallet. However, getting greedy can lead you to problems later. As a student, you earning potential is limited, so opt for just one card and ensure you handle the card wisely rather than opting for multiple cards and struggling to make ends meet.

Tip #3: Stay away from cash advances on the card

This is one of the biggest follies you can do. The charges for cash advances are much higher than those for the purchases you make on the card. you will be paying hand over fist for cash advances because you not only incur the financial charges for this service but also attract a higher rate of interest. To add to your woes, the amount you pay towards the dues will first be credited towards your purchases balance and only later on to the cash advance. Hence, you will have higher debts for a longer time.

Simple tips like these can help you create a good credit history which can prove beneficial in the future. Ensure you take these simple steps and move towards a healthier financial well being.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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