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3 Things College Students Should Know About Credit Cards

College students are often placed in a tough financial spot. A busy schedule of classes means there's little time to earn income, but new laws around who can take out credit cards means that students under 21 are often stuck without a financial alternative for emergency purchases. Not to mention, building credit from a young age is a great way to eventually meet those big post-grad goals, like purchasing your own vehicle or home. So, what do college students need to know about credit?We've got three tips to help any college student reach financial success.

No Credit Isn't Good Credit

Blog 3 Things College Students Should Know About Credit Cards

When you get declined for a line of credit due to your age, you may think that this will keep you from overspending and accruing too much debt. While overspending is certainly a risk you take when you open a credit card, having no credit doesn't help your situation either. Landlords, lenders and even employers use your credit score to get a sense of your ability to manage your finances responsibly and pay down debt. Without any credit to your name, you essentially are a blank slate. Building your credit means building your financial reputation--and your future.

Rates Matter

When you get approved for that very first credit card, don't forget to read the fine print. It's better to start with a smaller line of credit at a lower rate than a big line of credit at rates that will keep you in debt. Shop around to ensure that the interest rate on your purchases won't prove to be a barrier between you and a balanced budget each month.

Student Cards are Smart Cards

If you're a student, or a young person under 21 who is new to the credit card game, it's worth looking into student credit cards as a way to start building your credit while creating an emergency financial safety net. Student cards often offer low rates, especially for students who pay their bills on time every month without fail. A student credit card can be a great way to establish your financial reputation before applying for a new apartment, car loan or even a first job. Manage your credit well, and your credit will help you meet your financial goals.

For more information on credit cards and how to find an option that works well for any new borrower, please contact us today!

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