Student Credit Cards 101: A Student's Guide to Credit

Written by Rebecca Lindsey


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It’s vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out CardRatings.com.

Developing a new view about credit

Mary Ann Campbell, CFP, founder of MoneyMagic.com and a money educator, cites unrealistic expectations as a major reason for high student debt.

Campbell, who teaches personal finance courses, says “Many students’ expectations of their earning potential after college far exceeds what their actual income will be.” She notes that some students use their credit cards with abandon during college, planning to pay off their debt when they land that great job after college. Indeed, some students forget that in order to get torepparttar top ofrepparttar 112342 career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. Andrepparttar 112343 expense of starting a new job and life on your own can just add to existing debt.

Manning’s website, CreditCardNation.com, contains a great resource for students seeking a more realistic view ofrepparttar 112344 first few years after college. Usingrepparttar 112345 ‘Budget Estimator,’ a module designed by Manning, students can identify an average yearly or monthly starting salary for jobs in their particular major. The program automatically figures in estimates for taxes and social security payments. Students can then plug in expenses for housing, car payments, utilities, food, insurance, telephone and internet bills, clothing, credit card bills, student loan payments, and entertainment, etc. The module lets you know when you have spent more money than you make, and allows you to adjust payments as necessary until you getrepparttar 112346 hang of how your money is best distributed.

Students that seem to haverepparttar 112347 most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents’ income. Cable television, cell phones with cameras, and new cars become ‘necessities’ instead of nice extras.

Advice to grow on

When it comes to credit cards, students have great advice for other students. Heather, a college junior from Arkansas, recommends getting one card with a low limit. “This limitsrepparttar 112348 amount of credit you have access to and therefore removesrepparttar 112349 temptation to spend more than you have or more than you can pay off immediately,” she says.

Another student recommends selectivity. “Don’t sign up for a card that charges an annual fee to use it, and readrepparttar 112350 terms ofrepparttar 112351 card before applying. You wouldn’t believe how many people don’t know what an APR rate is.” For more information on findingrepparttar 112352 best rated cards, check out CardRatings.com. You can read reviews of cards from other students and getrepparttar 112353 lowdown on perks of various credit cards.

Campbell has three recommendations for students: The first is open communication. Campbell says students who are educated about financial matters seem to have a better overall attitude regarding credit cards. Students should find a trusted source to talk openly with about money issues. Second, students should switch from spending behaviors (such as shopping) to activities that help you achieverepparttar 112354 same feeling of gratification or reward, such as intramurals, exercise or campus organizations.

Last, but certainly not least, enroll in a personal finance course as soon as your schedule allows. Says Campbell, “If it’s not required coursework, take it as an elective. You will learn a set of life skills that will not only help you right now, but also after college and forrepparttar 112355 rest of your life.”

Rebecca Lindsey is a Senior Staff Writer for CardRatings.com. She began writing articles about consumer credit issues for CardRatings.com in September 2000.


How Web Masters Can Start a Home Based Business Using Credit Cards

Written by Claire Bowes


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2. Second, you have to find a card that has a great rate and/orrepparttar best benefits for you. For instance, if you will pay offrepparttar 112341 balance every month but travel a lot then you might want to consider a card with a higher interest rate that gives more frequent flier miles since you will not be affected byrepparttar 112342 interest rate when you can’t pay offrepparttar 112343 credit card balance every month. Onrepparttar 112344 other hand, if you can’t pay your balance every month, you should considerrepparttar 112345 card with a lower interest rate.

3. Once you’ve found an appropriate card, you should make a commitment to pay your balance responsibly. That is, you should only chargerepparttar 112346 amount that you can realistically pay in a month or so and make a point not to rack up a ton of credit card debt.

4. You should really try and avoid using your credit card to get cash advances. This is because most companies charge cash advance fees which could hurt you. However, an exception to this would be if you have an emergency and need to handle a cash crunch then you should userepparttar 112347 least amount possible.

5. Review your statements as soon as you get them to evaluate interest rates. Make sure that you don’t see any errors and if you do then report them right away.

In conclusion, you shouldn’t feel guilty about using your credit cards to help you start or finance your fledging web business. Instead, you should userepparttar 112348 above-mentioned tips and use your cards responsibly so that they continue to be a blessing when you need them!

Claire Bowes is a successful freelance writer and owner of the The Credit Card Centre where you will find further advice and tips on the best credit card deals and 0% balance transfers.


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