Student Credit Cards - Financial Responsibility

A recent addition to a college student’s must-haves is a credit card. The credit card is becoming more and more prevalent among young people ages 18-25. Perhaps it is but natural for credit companies to mine this previously untapped market. More and more products and services are being targeted towards these customers. The more cool stuff is out there. The more they will want to buy – if not with cash.

The problem with swiping away plastic is just that – students fail to realize that with each swipe they are one step closer to debt. That is why it is important that the right information on the judicious use of credit cards be made available to students. That is not saying that a credit card per se is a bad thing. Having a credit card also teaches students financial responsibility – showing them that it is important to live within means.

It is possible for someone of that age to be content in knowing that their card offers 0% APR. What they may not be aware of is that the offer is for a limited time only or that if monthly payments aren’t fully paid. A high finance charge will be applied. It is unfortunate that less than half are able to pay off the monthly balance. This only proves to show how little effort is made to educate students on the right usage of a credit card.
Here are some things to help you get started on learning how to use a credit card wisely and to manage finances in general. - Consider the nature of your income and how much of it is stable income. Stable income is important because you will be relying on this to make those regular payments. If you don’t have a steady source of income, continuing with one in spite the lack of a stable income will run you into debt in no time. - Observe your credit limit. A credit company will set the limit for you. If your credit limit is beyond 25%. It is a practice of some to charge important things such as rent and utilities to a credit card.

The rationale for which is that even if the cash income is delayed. Payments for the essentials will not.