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For many students who are living away from home at college, it is a new experience for them. One of the things that they quickly notice is that very few things are free. Instead of calling home every other day to ask their parents for more money, there are many advantages to getting a college student credit card. But there are many disadvantages also, which need to be carefully watched. One big advantage is that the student, with responsible use of the student credit card and on time payments every month, is going to establish a good credit history and a good credit report. Many students don't even worry about establishing a credit history until they are out of college, but many say that getting your credit established while you are still in college can be a major advantage, since after graduation the student is going to be looking for housing, a job, maybe a car, and much more. But since money management is not something that most parents teach their kids these days, there are many things that a first-time credit card owner like a college student is going to want to watch carefully to avoid getting into trouble with it. Keep an eye on your balance and do not go over your credit limit. The student credit card cannot be viewed as "free money" but rather something that needs to be repaid, and that credit limit can be uncomfortably close to your outstanding balance if you are not watching it. In addition to the high rates of interest that you will be paying on a student credit card, there are additional fees assessed if you go over your credit limit. And if you are close to your credit limit, be aware that the interest charges on your outstanding balance can take you over your credit limit. Use the student credit card responsibly and only for necessities. Note that a "necessity" is not defined as providing the money for the kegger at the frat house next weekend. While it is a nice feeling to have the power to purchase something based on a piece of plastic that you whip out of your wallet or purse, it is equally embarrassing to have your credit card declined because you missed payments or are over your credit limit. The single best thing you can do to get on the good side with the issuer of your student credit card is to pay your bill on time each month. Pay more than the minimum payment, because paying only the minimum payment will barely reduce the principal balance and you will be paying a ton of money in interest charges. Paying on time each month will establish you as a good credit risk on your credit report, which will put you in a good position with good credit established after you graduate. But the flip side is also real – if you miss payments and exceed your credit limit, it is going to take many months to straighten out your credit report so that you can once again be considered a good credit risk. Credit card companies have a memory like an elephant, and two or three months of on time payments does not make them forget about the missed payment four months ago. Responsible use of credit while you are in college can go a long ways towards preparing you for life after graduation. For more insights and information about a College Student Credit Card please visit our web site at http://www.student-credit-card-resources.com
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