Sunday, August 2, 2009

Before Applying For A Credit Card Tips

Its been a long time since my last post here. It was really a busy week for me until now. Well, here is the 2nd part of my credit card tips for college students.

For students, you may ask your self this questions before applying for a plastic credit card.

Do I really need a credit card?
If you are able to pay for what you need with cash, check, or a debit card, you might not need a credit card. On the other hand, credit cards are great for emergencies and are useful for purchasing your essentials online.

Can I afford to have a credit card?
If you pay a hefty annual fee just to have a credit card, or regularly carry a balance on your card and pay a high interest rate, you may find yourself spending a lot just to borrow a little. On the other hand, you can make your credit card work for you by choosing a card with no annual fee and by always paying off any monthly balance when you get your bill.

What will I use the credit card for?
You should never finance your college education or your living expenses by using a credit card. Also, using your credit card for things you don’t need and can’t pay cash for is a bad idea. Sure, it’s tempting to whip out the plastic to buy that “something” you’ve always wanted, but if you’re not willing to pay cash for an item, then don’t buy it on credit.

How much credit should I get?
If you are new to credit, or you are a student without a steady income, don’t accept a card with a high credit limit, just because the credit card issuer is willing to give you one. Sure, it’s flattering to be offered a high credit limit but it might tempt you to charge more than you can realistically pay back.

How am I going to pay for this when the bill comes?
If you can pay off your balance every month, you’re making the credit card work for you.
If you think you’re okay because you can pay the minimum payment every month, get ready for a very expensive long haul. Though minimum payment amounts can vary among credit card issuers, one thing is for sure, paying only the minimum will mean you are paying for years after you leave college, even if you stop using the card.

Hope I have given simple and basic tips for you to think of. Till next post.


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