Student Credit Cards

Placing that credit card down on a table at a restaurant is cool.It's a wondrous piece of plastic that can open up many doors for you.You could even had it reflect your personality with colors and designs. In a world where everything is right here-right now and hardly any time to go around it's only obvious. We fly by drive-throughs, e-z pass, drop-off services and of course shop on-line. Is it any wonder why we want or need a credt card for that matter.

Credit cards, when used responsibly, could be a great thing. It's the quickest way to build credit. You can of course build your credit with a mortgage, car and student loans, just to name a few. But with a credit card your score can go up like a fever (assuming you are responsible). Here's the messed up twist, you can't get more credit without having good credit in the first place. But like everything else in the world it's pretty backwards, but what else is new?

So most likely your first experiance to the world of credit cards will take place at school. If you haven't already experianced it, you'll probably be on campus or slightly off (but not by much) and you'll see tables, blow up booths or anything eye catching. You'll probably smell doughnuts, coffee or pizza (and it's all free). They'll toss free t-shirts or hats and such in your direction. All this hoopla in the attempt to get you to fill out a credit card application. I've heard stories where all they need is signature and BAM, you'll have a credt card in your mailbox in less than a month.

You're probably asking yourself, is it really that easy? Well unfortunately it is. You don't need a steady flow of income or past credit history to get a card. These banks placed on campuses are "banking" on late and over-limit fees as well as those hefty finance charges. Unfortunatly these banks are preying, let's face it guys, on your inexperiance. You think "that can't happen to me". But it's so easy and it happens way too often. I've been there. You see a hot pair of jeans in the window -MINE, go to CVS and rack up on make-up and other goodies -MINE, treat friends to dinner -MINE. Then before you know it $1000 in debt. Credit card companies thrive off of this inexperiance. They know that their parents will bail you out or that you'll just line up for the free pizza and get another, then another....you get the picture. Some people are still trying to dig themselves out of debt. Student loans and high credt card balances are no way to start your new life after college.

Like I said earlier credt cards when used responsibly could be a good thing, and here's how. Develop a habit of shopping around and getting the best deal out there. Though the interest rates on student credit cards are relatively low, they also offer a low credit amount. Another way to protect yourself is to ask for a SECURED credt card. A secured card is generally a low-limit card that is backed up by money you send to the company. For example, say you want a $500 secured credit card. You'd send $500 to the credit company and they'd issue you a card with a $500 limit that works the same as any other credit card. You STILL have to make payments on time and all of that, and as far as your credit report and score are concerned, it's treated the same as a regular credit card. This will help a you from accruing high amounts of debt because of irresponsible spending. If you need groceries, or that recommended book but you don't have the money for it, then it may be time for you to use your student credit card. It's good to start learning good financial habits from your student life itself. Don't use the card to pay for everything and anything. I'm sure if you use these tips and make smart decisions you'll have the foundation for a prosperous credit future and a score anyone would be jealous of.

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Article by Cristina Angueta. Please visit us at www.factsoncreditcards.com

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