What You Need To Know Before You Apply For A Credit Card
The following extract is from a series of managing money articles, videos and tips about College Student Loans …
Before you make a decision to apply for a credit card to buy those new clothes, you should take a moment to carefully think about your purchase. Being away from home at college is a liberating time. You are surrounded by exciting people and many new opportunities and have a new set of responsibilities placed onto your shoulders. Applications for MasterCard, Discover and Visa credit cards are all around you. The mantra of “buy now, pay later” echoes through the halls.
Instant approval credit cards may seem like a welcome source of relief when you find yourself desperately needing school supplies or in need of the basic things. 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 stop and consider the ramifications of how easy it is to abuse credit.
No one is arguing that higher education is costly. Tuition, room, board and associated fees can deplete cash reserves very quickly. You, as a student, may have such a demanding class schedule that finding part-time work is practically impossible. This is especially difficult if you are committed to participating in school activities, such as sports or student organizations. Most parents simply can’t afford to pay for all the extra costs a student incurs, not to mention if there are other non-curricular expenses and luxuries wanted.
The key to understanding how to use a college student credit card, is one based on “need” only. Most students must have some form of funds in case of an emergency and it comes down to the student knowing the difference between an emergency and a simple want. Apply for a credit card and when you receive it, put it aside in case of real emergencies. Do not go around applying for every credit card offer you receive. Pay careful attention to the interest rates and any associated fees that the credit card company states in their terms and conditions.
Apply for a credit card and use it when you absolutely must. 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 credit 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 articles on borrowing money, visit: Student Loans
