While you are in college, credit cards can be a lifesaver for meeting unexpected expenses and for use in an emergency; however, it is important that you use your cards wisely. Whether you are a traditional young college student or an older student going back to school, money will probably be tight, and you will probably be tempted to charge things that you want but do not really need. This is in addition to using your credit cards for expenses and necessities that your income may not cover. If you are not careful you could end up with maxed out cards and an enormous debt before you even get your degree. This could ruin your financial future before you even get started in a career, or leave you struggling to pay off this debt at a time when your income is relatively low, creating a financial hardship.
The first important rule is to set a budget, and determine what you will use your cards for. Remember that this is not free money, and the money you spend will have to be paid back plus interest. Before you use your card for any purchase that is not necessary for your education stop and think twice. It is fun to hang out with the group and go to the great sushi restaurant down the street, but the high cost of this dinner may not be the best use of your limited funds right now or worth the debt you will incur because of this outing. The same is true with other expenses that are not truly necessary. Too often using your card does not seem like spending money, and you may end up splurging financial responsibility and a balanced budget right out the window.
A common misconception is that college students cannot get a credit card, because of limited or nonexistent income, but this is notusually the case. Even traditional college students who are young and financially inexperienced may be inundated with credit card offers. If you are receiving numerous offers for credit cards it is a mistake to apply for every one. Instead look through the available cards carefully, and determine which cards offer the lowest rates and best terms. Once you have been approved and receive your cards use them sparingly, and only when necessary.
Your credit history is important, and using your credit cards foolishly during your college years can have a big impact on your credit rating and score. These will affect your ability to get a loan, buy a new car or home, and sometimes even to get a job. Credit cards offer many benefits to college students, but you have to use financial discipline to keep from spending too much or buying things you do not really need. Do not waste your financial future with frivolous spending now. Stick to your budget, and resist the temptation to go out to eat or buy that new outfit. You are working hard in school for a better future, so do not damage your credit from the beginning by abusing the credit cards you have. The interest and balance payments on credit cards can accumulate quickly, and before you know it you could be in real financial trouble.
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