How Students Can Use Credit Card Properly And Keep Debt At Bay

If you visit a college and university campus before or during the admission to various courses, the queues of wannabe graduates and post graduates will be common sight. You cannot miss the eye caching displays put up by various credit card companies in the campuses. As it is, credit card companies do not skimp on advertising and their marketing staffs can be smarter than you think. Their freebies and promotional offers allure millions of students and many of them end up buying their cards. A 2009 research indicates 90 percent graduating university students has one credit card. The number of such cards increase they progress through their courses in most instances.

Students with balance in credit cards generally complete graduation with $3450 or more stuck in credit card debt. The credit card debt along with student loan means most of these students will need more than decade to pay off the entire debt. As it is, finance becomes the number one stress factor for post-secondary candidates, with academic performance and job prospects taking up second and third positions, respectively.

Financial experts agree that credit cards can prove to be source of monetary troubles and debt for many students simply because they hardly understand mechanism of companies and right ways to use their cards. Many students find it hard to bounce back from monetary mistakes and hang credit cards make them keep spending while they do not have cash. However, credit card is not harmful by itself and can serve many purposes when used with care like other financial tools. To avoid accumulating credit card induced debt, students need to get the basics about interest rates of their cards and the mechanism.

To keep credit card debt formation possibilities at bay, students should make it a point to clear credit card balance diligently every month. It will ensure the interest does not pile on the borrowed amount. The students who do not carry monthly balance on credit cards do not get into trap of debt easily. Even if you end up carrying balance in one month for some unavoidable reason, make sure you clear it the following month.

Along with searching for student credit cards, you January also consider analyzing bank offerings especially if you have a student account with a bank. However, some student cards come with no yearly fee and some of them even have rewards programs. It would be safe to pick a card with no annual charges and low interest rate. Other viable alternatives include pre-paid debit card. When you opt for a credit card, pay special attention to the terms and conditions of the provider. This is what most people including senior users overlook. These details can be in fine prints but the pain is worth the result!

As a student, you need to use credit card responsibly not only to avoid getting into debt. Remember the fact when you complete your graduation or post-graduation and enter professional life, credit score will be very important for you. Banks and financial entities will clear your application for home or car loan based on your credit record. It basically denotes your capability to deal with your finance. Students with credit cards who have paid off monthly balances timely have higher chances of getting sanction for various types of loans.

It is important that you understand credit card should not be treated as a license to buy anything you fancy without having cash in account. Make it a habit to use credit card when carrying a significant amount of cash with you can be risky rather than using it for everything you buy.

The author writes on diverse financial topics including loans, debt consolidation and insurances. To know more, visit

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