The Do's and Don'ts of Student Credit Cards - Article

Student Credit Cards are a great tool to get through your college experience because few live on cash alone. There are many benefits to having a student credit card however, credit card debt can ruin your financial health for years to come. So what is the deal with student credit cards? Here are a few do's and don't that you should follow before you sign the contract.

Do's
Fee research - Make sure that your credit card issuer charges reasonable fee's and APR's compared to other credit cards. Most student credit cards will offer no annual fee and up to 6 months at 0% interest. Remember that to high of fee's can make it very difficult to pay down your balance.

Research your rewards - Every one wants stuff for free, so why not sign up for a credit card that gives you the rewards you want most. Most student credit cards offer cash back or travel rewards to say thank you for being a customer.

Set up automatic payments - It is imperative that you make your payment on time every month or your creditor will charge you late fee's of upwards $50. By setting up an automatic payment thru free online account management you can make sure that you are never late.

Pay more than the minimum payment - Did you know that if you pay the minimum payment on $10,000 at 15% interest it could take you up to 15 years to pay it off? That is a long time, so try to pay as much as you can afford each month.

Don'ts
Miss payments - Missed payments can stay on your credit for up to 7 years, severely crippling your credit score and inevitably costing you a lot of money in future credit debt.

Allow your balance to exceed your credit limit - You will get charged a fee that will build every month that you are over your limit. This will also have a negative impact on your credit score.

Spend money on your credit card if you can't pay it back - Always be in control of your credit debt. If you allow yourself to live above your means, soon your credit will grow above your head and you will be saddled with a huge bill. Be smart with your spending.

As long as you are responsible with your credit, you will build a sparkling credit record for your future while earning fantastic rewards that you can use while you are in college. Follow these simple do's and don'ts and you will reap the rewards of good credit throughout your college career.