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Student Credit Cards -- EZ as 123 |
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Written by Webmaster
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By Pamela Peterson
 Yes, you've flown the coop, and now you have to start taking care of all of those things Mom and Dad always took care of -- food, car insurance, keeping a roof over your head, etc.
One of the things which probably doesn't rank up there with cramming for finals, finishing up that paper, or going to the latest party is establishing credit. Still, it's probably worth a few moments of your time to check out these three easy steps for getting started.
Step 1. Get a student credit card.
There are many sites on-line. If you have a checking account, checking with your bank is always a good place to try. Typically banks give you a low limit, but that's fine -- you don't need a high limit. You should be able to find a card with no annual fee. Interest rates are not too important at this time because what you want to do with that first credit card is use it in lieu of cash, and then pay it off every month. However, you may as well shop
around a bit and get the best interest rate you can. It just may be a little difficult to get a great rate since you have no credit history. Using your card and paying off the balance will start building a favorable credit history, and your monthly statement will give you a record of how much you're spending and on what.
Step 2. Make your payments on time.
This is so critical. With this first card, you don't want to make minimum monthly payments, you want to pay off the balance. You're not using the card here to actually borrow, you're mainly using it to replace cash and build your credit history. Having a good credit history will pay off later when you do actually need to borrow money (for a house, a car, student loans, etc.) because you'll qualify for lower interest rates. If you have some extra expenses and you just can't swing the entire balance, pay as much as you can, but be sure to make the payment on time. (All three credit bureaus keep track of those late payments for years.) Then catch up the next month.
Step 3. Don't overspend.
Yeah, now you've got the credit card. Wouldn't that jacket look great on you at the next football game? Wow, now you can get that latest video game. Wouldn't it be great to get one of those new cell phones with all of the latest features? Oh boy, now you can have a latte every morning.
Yes, you may be tempted. Having the credit card would make it possible for you to buy things you don't really need and can't really afford. I really want to stress how important it is for you to live within your means. This doesn't mean you can never buy stuff you really want. Just plan for it. Put it in your budget. Take control. Impulse buying is forfeiting that control.
I hope this information has helped.
This article was provided by Pamela A Peterson, president and CEO of www.123creditpalace.us. She set up and operates this site to provide a variety of credit options (student credit cards, balance transfers, business credit cards, gas cards, travel cards, etc.). so that people can find the credit offer(s) that best suit their needs.
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