'Student Credit Card Management' -Tips

Students are in need of money for many purposes despite paying for their education. During this periods they tend to carry many credit cards, as they are not aware of the fact that they have to repay a big amount of money after some time. It is the best tips for them to spend according to their budget. From this struggling age they should learn how to manage money and finances. These few tips would definitely help them in this regard:

Tips

- The lack of financial skills is always associated with higher borrowing costs. Learn about credit cards, and terms carefully.
- Use your plastic money in the most appropriate and responsible manner.

- Get the most suitable plastic. Keep in mind that student credit cards are not created equal. They come with different interest rates, annual fees, spending limits and billing policies. So make a careful research to find a plastic that provides most benefits and freebies. If you think you will carry a balance from month to month, look for a low APR credit card. Even though a rewards plastic may seem cooler, the higher APR and possible annual fee can eat away all your rebates.

- Use your credit card: make small purchases that you can repay at the end of your billing cycle. If there are no borrowing-payment data, there is nothing to report to the credit bureaus.

- Pay all bills on time: Unpaid utility payments, taxes, parking tickets and library fines can appear on your credit report as a collection account and seriously damage your FICO score.

- Don't apply for multiple credit cards at one time: A lot of recent credit inquiries will hurt your credit score. One or two plastics are enough for most students.

- Plan a budget: Live within your means and avoid frivolous purchases. Keep in mind that people who have a lot of things are not rich. They just spend a lot of money.
Student credit card management

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