As a student, you will inevitably run into some financial emergencies. Many students handle these
unexpected expenses by using credit cards. You can usually qualify for student credit cards when you're
enrolled in school, regardless of your lack of credit history. More and more students are finding that
student credit cards give them the security that they need to make it through school. They are also
building their credit which will prove to be very important once they're out of school.
If you're a student with a credit card, there are a few rules of thumb that you should follow. First,
don't use your credit card for frivolous purchases. This includes fast food, nights out with friends and
lots of new clothes. Be diligent about only using your emergency credit cards for emergencies. Getting
auto repairs, buying project supplies and paying for an emergency room visit are all things that can't be
put off until later and can be considered immediate necessities. Always ask yourself if what you are
paying for is a need or a want and you should be able to keep yourself on track.
It's very important to always make your payments on time. Even one late payment can negatively impact
your credit score. It's also important to always pay more than the minimum amount due to show that you
take initiative when it comes to paying off your balances and don't let them get out of control. Pay your
credit card completely off whenever you get the chance so that you don't have a long history of revolving
debt. Try not to get your credit cards up to their spending limits. Keeping them down shows that you are
responsible enough to have available credit and not use it. If you follow these suggestions, then you
should be on your way to a decent credit score.
If you do get in over your head, then you may need to come up with a strategy to manage your debt.
Attacking the card with the highest interest rate first is a common strategy to paying off debt. Pay as
much as possible to this one card, even if it means making minimum payments on your other cards for a
while. Another way to pay off debt is to take care of your smallest balances first. This is a more
motivating way to pay off debt because you'll see the bills disappearing. Keep paying the same amount
every month towards your debt. This will get you to pay more and more towards your largest bill over time
until all of your money is going to that one card.
Sometimes you can call your credit card company and simply ask for a better annual percentage rate. A
balance transfer can get you a short term special deal that can help you pay less interest in the long
run. Watch out for fees that may end up costing you more than the interest you might have paid. Don't be
lured by a credit card deal that has a great promotional rate and then balloons into something really
high. Be diligent and your student credit cards can be paid off sooner than you think.
