A Guide for the Student Credit Card User

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Student banking is not as easy as it sounds, although many would say it is, since they usually deal with small amounts of money. Thing is, the budgeting, management, expenditure, are all just as sincerely carried out, only at a much smaller level as compared to a full-fledged executive’s account. If you are a student, you know exactly what I mean. Most students would refrain from using a credit card as they are scared of accidentally exceeding their credit potential. However, the right kind of 2014 best student credit cards can actually help you rather than be a burden.

credit card user

Consult your parents

When it comes to credit cards, the first thing you need is to prove your ability to repay your card loans on time. For this, you either have to show the company that you have a full time job, or you have to have someone who would co-sign your card account or provide a deposit of a certain sum of money to secure your credit card. More importantly, parents are experienced people in matters of banking and they can guide you through the various things that one needs to know before they use credit cards, how to use it, how to manage your finances using a credit card, and so on.

Apart from that, you yourself ought to get out there and figure out how to best utilize a credit card to suit your lifestyle, your academic and personal life and so on. It is important that you, with the help of your parents, manage to prove to the credit card company that you can handle a card and use it wisely.

Take the stairs, don’t fly!

Remember that the thumb rule of being a good responsible credit card user is to draw money only when you have to, and repay it within the due date as far as possible. Companies will not always give you all the freedoms that come with the credit card but only a small fraction of it. It is your responsibility to prove to your credit card company that you can handle that kind of freedom. Hence, it is important that you use your credit card wisely (not using it at all would have the extreme opposite effect), and do not incur fees or fines due to overdue payments.

It is often a great idea to have your own budgeting spread sheet on Excel and keep track of what you spend and where. This would not only help with your credit card usage but also in general, when it comes to accounting for what you spent last month, how much you need to cut, how much you saved, and so on.

Be responsible

Most of your peers (you’ll know if you ask around), have high debts on both their credit cards and student loans with accompany them with the degree that they get for it. Because of this, many students do not have free and happy lives immediately after their degree. You can avoid this by figuring out in advance what you have to spend and then spending accordingly.