Oh No! College Students? Credit Cards? Do they Mix?

College students and credit cards

It’s almost June and you are already thinking of the fall college season. Do I send my child to college with their own credit card? Well, they are responsible and I know they would only use it in an emergency. So, Yes, I will.

Wait! Stop! Do you really think so?

Late nights, hunger pains, a new outfit, room decorations etc… They are all such small expenditures and boy, do they ADD UP Quickly.

The following are some Quick Tips based upon my 20 plus years in the credit restoration business. Some of which were spent at TransUnion, one of the top 3 major credit reporting agencies:

• Get a Student Credit Card –They cater to college students and offer all kinds of incentives
• Never pay an Annual Fee — It’s all negotiable. Competition is fierce among credit card issuers and if a fee is posted, more times than not, they will waive it. You might have to call yearly to request it and its worth doing so.
• It’s all negotiable — Competition is fierce among credit card issuers and if a fee is posted, more times than not, they will waive it. You might have to call yearly to request it and its worth doing so.
• Credit Card Companies Have to Make Money — Remember that. You could be charged for anything. A late payment, an express payment, an internet payment, over limit fee, yearly fees, promotions etc.
• Only Use your Credit Card in an Emergency (life threatening, not a fashion, decorating or food emergency) — This takes will power when you see others using plastic for everything. Don’t be impressed. Most of these people owe allot of money and live threw their credit cards.
• Build Exceptional Credit — Set up an automatic bill payment using your credit card. Like your cell phone bill. Pay it in full monthly and on time. The key to exceptional credit.
• Never, Ever Carry a Balance — It’s the beginning of the end. High interest rates worry, late payments, credit begins to decline.
• Be Aware of Promotional Credit Cards — Once you receive your student credit card, other offers will follow. Credit card companies will send you the actual credit card as part of the offer. DO NOT BE TEMPTED!
• We only need 2 credit cards — American Express and a revolving charge card.
• Know when you are Not Ready — It’s like being on a diet. You cannot walk into a pastry shop or for me a Dunkin Donuts shop when I am really focusing on my diet. It’s too tempting so I chose to stay away.

Summary

Follow the above principles and you will be a financial success. Cash is still King or Queen. You get better deals, service and attention. Let that be your motivator and not what you see in the world around you.