Things to Keep in Mind When Using Student Credit Cards
Have you just received a credit card account extension from your parents? Or have you recently applied for a student credit card? If you answered YES to any of these questions and you wish to know how you can responsibly use and manage your existing line of credit then, we suggest you keep the following pointers in mind:
Be mindful where you use and disclose your account details. That’s because not all commercial establishments and shopping sites today are equipped with excellent privacy and security features. Hence, if you’re careless with regards to your credit card information, you may soon end up a victim of credit fraud and even of identity theft. Hence, you should heed the advice of finance experts and use your line of credit only in stores and websites that offer the highest level of protection against petty thieves and online hackers. By doing so, you can safeguard not just your account details, but also your personal and contact information.
Never go overboard with your credit card transactions. Always remember that spending beyond the limit or cap imposed on your student credit cards will not just cost you a great deal of cash, usually in the form of overdraft charges and declined transaction fees. Such habit can also cause your parent’s credit score (if you’re using an account extension) or even your personal credit rating to drop. So, make sure that you use just a reasonable percentage, say 25 to 40 per cent – of the limit imposed on your line of credit. And make it a habit to check the available balance on your account before charging your purchases and bills on it.
Settle your credit card bills in full. Don’t submit just the minimum amount due to your card issuer. After all, such habit can cause your interest payments to balloon out. At the same time, it can also inflict severe damage to your credit history and affect your chances of qualifying for affordable credit programs, later on. This only stresses the importance of paying off your credit card charges, completely. To succeed in this matter, you should see to it that before you use your credit card to cover your expenses, you have enough funds at home, which you can allot for settling your future bills.
Keep up with your student credit card charges. Paying your bills in full is just one part of the equation. You should also make it a point never to skip or miss out on your payments. Bear in mind that payment delinquency will not only cost you cash, in the form or late payment penalties and other pesky fines. Such poor habit can also push you down into debt traps and ruin your financial prospects. Hence, as early as now, you should develop a personal schedule for paying your financial obligations, most especially your credit card bills. If you find it difficult to remember your due dates then, you can simply set up personal alerts in your mobile gadgets to help remind you when a payment should be made.