5 Ways To Manage Your Credit Card As A Student

By Guest | Jan 14, 2012

This is a guest post by Kelly Preenler. Credit card is a double edged sword! How do you handle it wisely? Would you like to share your tips and advice as a guest article with our readers? You’re welcome. See the guidelines.

If you are a student living away from home, you probably have a credit card with you, or are planning to get yourself one very soon. While a credit card has proven a very good and indispensable item to have for college students, rest assured it could be the beginning of your financial woes and troubles. Statistics show that financial debt is the leading cause of college student dropout cases today. Let’s get started on some of the ways you can manage your credit card as a student.

Stick to One Credit Card With the Lowest Credit Limit

You don’t have to start off with 3 credit cards as a student… remember that once a credit card is charged, it would need to be repaid sooner than later. By sticking to only one credit card with a low credit limit, you will be able to limit the amount of credit you will have access to. What this means is that you will avoid the temptation of having to spend more than you can access or more than you can be able to pay off by the end of the month.

Divert Your Attention From Shopping

There are some activities, such as campus organizations, exercise, or intramurals that would give you the same reward of feeling of satisfaction and gratification as shopping. By diverting your attention from shopping and putting more of your focus on your education and such activities, you would be able to control your credit card usage.

Avoid Credit Cards Charging an Annual Fee

As a college student, you should never sign up for any credit card that charges an annual fee for its usage. This way, you would be able to pay only what you have used and avoid accumulating an annual fee that may become exorbitant in the long run. While at it, ensure you read the terms and conditions of your credit card carefully before applying for one. You will not believe how many college students today don’t know what an APR rate is!

Pay the Outstanding Balance in Full Each Month

The only way you can be able to manage your credit card as a student is to ensure you pay for what you have used throughout the month at the end of the month. This way, you would be able to avoid late payment fees and other penalty fees that often add up to a significant amount in the long run.

Live Within Your Means

Most college students who end up with huge credit card debt are those who believe that their lifestyle in and out of college should be the same way as they used to live with their parents. High-end cell phones, cable television, high-end cameras and new cars are some nice extras that you can live without just to give you the peace of mind to go through college without a huge debt on your shoulders.

Your years in college can be some of the most memorable and/or some of the most boring and costly in your entire life. The good news is that by knowing how to manage your credit card, you wouldn’t need to drop out of college because of financial constraints, you don’t have to start your career strapped in debt, and more importantly, you don’t have to sacrifice the joy and fun of your college life just because of poor credit card usage.

Byline: Kelly Preenler specializes in everything related to finance and credit cards. You can get information on topics such as car loan calculator and loans for bad credit.