Credit Card Tips for College Students
Now that you're making financial decisions for yourself, be sure to protect yourself from credit card tricks and traps. Here are some tips to consider before you break out the plastic. Adapted from "Credit Card Tips for College Students,” Consumers Union © 1998-2007.
1. Don’t get tricked, trapped or suckered into a card with bad terms.
If you want a credit card, get one with a long-term low interest rate
(APR). If you get a low introductory rate, chances are it’ll start at
0% and then jump to 20% with one almost-on-time-but-didn’t-quite-make-it payment. Still want a credit card? Just know what you’re in for…2. Once you choose a card, don’t let your guard down. Credit card companies are notorious for changing rules and playing GOTCHA. Look through those mailings they send…they may include a nasty change in terms.
3. Pay your bill on time. Better yet, pay it
several days ahead of time. If the due date is on a Sunday and your
payment (duh) arrives on Monday – you’re late! Don’t laugh, this is
REALLY common. And when you’re late – see (1) above, your interest rate
jacks up.
4. Pay your bill in full. Whenever possible. And as quickly as you can.
5. Do not go over your credit limit. And set the
credit limit as low as possible. Don’t be fooled – credit card
companies LOVE to give you a credit limit you can’t afford.
6. Stay as far away from a credit card ‘cash advance’ as you can.
The interest rate on cash advances is MUCH higher and credit card
companies apply any payment you make to whatever else you owe first.
That cash advance hangs around unpaid and with increasing interest
until you DO pay your bill in full. Did we already mention that
they’re looking to get you?
7. Ignore those in-store “15% off today if you sign up for our credit card” offers. You’ll pay back what you saved and then some REAL fast.
8. Carry only one card. Less confusion. How many companies do you want abusing you at once?
9. If you do get into credit card debt, get help right away. Don’t wait until it gets worse. Try the Consumer Action Help Desk.
10. Remember your other option: CASH.
Still not convinced? Read the facts about college students and credit cards
. Or watch a funny video and see how the credit card companies are laughing:
- A screwball parody of Ashton Kutcher’s “Punk’d” by Americans for Fairness in Lending
- It’s always Christmastime for Visa! by Consumers Union
