Making the Grade with Student Credit Cards

If one is very first time going far from the house without money for pizza and movies. At that moment a television commercial, internet advertisement, or even a company on campus declares a special offer for college students – financial freedom, at last. Apply online and get approval at the spot – instant gratification. Pizza and movies are the least of the purchases now. New clothes, electronics, and vacationing in the south for spring break have all become possibilities. After this the day comes – the credit card statement is in your mail and the balance is more than your parents give you in cash for the whole semester. Getting a job is out of the question. So, the solution comes again via hawkers of more credit cards – balance transfer. Simply convert that balance to a lower rate card and make least payments. And then, that frees up that card to use again for more purchases. Maxed it out – no problem – there are a plethora of 0% introductory rate cards out there for balance transfers. Before you come to know , there are 4 or more cards in all. It’s very bad if you can’t make those monthly minimum payments. Moreover, your credit history is in danger before you get out in the world to make your mark. The fatal and scary use of student credit cards is the ease with which cash advances are available. Just swipe the card and grab the cash. Your place doesn’t matter, there is an ATM just begging to give you money to spend. But this facility is the one that is severely devastating to students. Not only is the rate of interest on cash advances higher, but there is generally transaction charges for getting that money – in addition to the transaction fee charged by the ATM. So, it costs you $10 to get that $20 from the ATM You had a hard week studying, so you treat yourself to lunch on Saturday for $10, get some retail therapy in and find a great jacket for $55, and then you and your pals get together and you buy pizza for $35. That was a relaxing weekend worth $100. So, you do that every weekend and when the statement comes, you owe $400. If you pull all of this money out in cash – it will likely be a lot more than $400. The problem is , that – you sprung for the pizza and your friends promised to pay you back when they get paid. But they don’t get paid for two weeks; meanwhile your bill is due at the end of this week. It’s not their problem – you must bear this. Your credit is at risk, not theirs. And that is definitely what your credit card company will inform you. Such experiences for a student are hard. Late payments, charging over your limit, shuffling money between cards – these are all mistakes that are neither forgiven nor forgotten. You will repent about your credit history coming some years later. Being a student with great earning potential down the road, you might not be so anxied. But when you want to buy a car or a home, these mistakes could remind again to haunt you. keep this thing in mind if next time your friends ask you to “borrow” money.