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Money Management Tips - What Students Need To Know Before Applying For A Student Credit Card
By Credit Watcher | February 21, 2008
The following extract is from a series of managing money articles about Borrowing Money …
Before you make a decision to apply for a credit card to buy those new clothes, you should take a moment to carefully consider your purchase. Being away from home at college is a liberating time. You are surrounded by new people and have a new set of responsibilities to handle. Applications for MasterCard, Discover and Visa credit cards are all around you. We live in an age of “instant” gratification.
Instant approval credit cards may provide much needed relief when you find yourself in urgent need of 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 massive 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 give adequate thought to the consequences of how easy it is to abuse credit.
No one is arguing that college is expensive. Tuition, room, board and associated expenses can deplete cash reserves very quickly. You, as a student, may have such an immense 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 their children as students, 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 money 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 you receive it, put it aside in case of real emergencies. Do not apply for every credit card offer sent to you. Pay attention to the interest rates and any associated fees that the lending company states in their terms and conditions.
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 repay the balance and you may not have the money 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!
For more information on student loans, go here: Student Credit Card
Topics: School Loans |