Stress Free Finance

As a college student in the United States, you will typically get inundated with various offers of credit. After you reach your 18th birthday, you can develop a credit history which can either help you or harm you in the years to come.

Your financial credit can have long-lasting economic ramifications, so you need to take good care of it even while you are in college. Even though merchants may appeal to you by offering all sorts of great incentives to fill out new credit card applications, you need to be careful about what student credit cards you sign up for and keep track of everything you have signed up for. That “free” pizza, coffeemaker, shirts, etc. that you got as a sign-up bonus can end up costing you very dearly someday if you do not exercise some restraint, caution, and adequate recordkeeping.

If student credit cards are not paid and have unpaid balances, a student could get into trouble. When you open too many lines of credit with multiple cards, your overall credit rating will be negatively affected. This can happen even if you are not approved for the card.

Institutions of higher learning typically have an agreement with the major credit card companies. This agreement makes a “cash back” card bearing a symbol of the institution available for every enrolled student. If not abused, this privilege works to the benefit of both the school and the individual. Unlike University meal cards, which may also come from credit companies, this is an actual credit card. It can be used everywhere that accepts plastic. A wide variety of cards are available, and students should consider what benefits they desire.

You can use your credit card to pay for the things you need, even your college tuition. However, be aware that the interest rate for credit cards is higher than for other types of credit. Before you sign, you should not only need to read all the fine print on the contract, but make sure you understand it as well.

Your credit history is important and may be reviewed by banks when you apply for a loan to buy a house or start or buy a business, as well as by future prospective employers and potential landlords. Your credit history will determine whether or not you are viewed as a financially responsible and stable person. One way to build your credit history is to use your student credit cards. It is important, however, to remember that any money you borrow must be paid back at some future date and will most likely be subject to some interest charges.

Be sure to exercise caution while you’re in college. You may be tempted by the great credit card offers you receive, but be careful which student credit cards you opt for even though merchants are competing to entice you. Chase Bank also offers Chase Platinum Student Cards which have reduced financing rates for visa or master card. If you remember that any credit you receive today must be paid back at some future date you can use your college student visa cards to build your credit history and have an easier time in the future when you want to apply for a bank loan.

- Angela Mercer