College Years Lay The Credit Foundation

This is a guest post from Tisha Kulak. Tisha Kulak is a writer for www.creditorweb.com, where she writes about student credit cards and responsible credit card use.

For many college students, the first year is also the first time students may have the responsibility of their own credit card. While many people might argue that college kids and credit cards don’t mix, it is a situation that should be addressed and not simply avoided. The truth is, credit cards don’t purchase things on their own. People make the purchases. If those people happen to be first time college kids and first-time authorized credit card holders, it is very important that education on the responsibilities of good credit practices and habit be a part of any credit card application process.

College years can be the opportune time for young adults to lay the foundations for a lifetime of good credit. Often, many of the younger generation have very little or no experience with real world finances. Understanding the principles of credit, the responsibilities of paying bills on time and how to budget are essential topics to be covered. However, the amount of information can be overwhelming to students who are also learning to adjust to a whole new lifestyle at college. Tending to think only as far as your next class or the next test day leaves plenty of room for mistakes. As a student, you should be preparing to work hard to maintain a good GPA, make friends, and figure out where you fit in. But it is also important to understand where you are going and how you get there. Your credit score is a big avenue to travel and it is one that stays with you for a long time to come.

If you think a credit card is necessary for emergencies and other school-related needs, take the time to learn about the realities of credit cards. Don’t fill out massive amounts of applications just to get free t-shirt or CD. Pay attention to the fine print. Understand the terminologies used in the contract you are signing with a credit card company. Do your research and compare credit card companies, benefits, and rewards plans that are now being offered. Be warned that as a student you will likely receive a great-sounding offer from a multitude of companies who want to sign you up immediately. Instead go online and compare the cards and understand just what it is you are getting. There are many credit cards that are designed specifically with the college student in mind and it is completely worth your time to investigate several before making a decision.

Destroying good credit at a young age will not do you any good in the long run. Just missing a payment can begin a whirlwind of credit issues that can hinder your credit worthiness for years. One of the most important things you can do for yourself now is to develop good and responsible spending habits. Make sure you only use that card for emergencies. Pizza at midnight does not generally constitute an emergency. Buying a bus ticket home to mom might. Once you start making informed decisions it will become easier and prepare you with a good financial foundation.

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