Tips On Consumer Credit

Learn how college students can manage credit

1. Know what you are signing up for

Credit card companies are full of salespeople. They want you to buy their cards. Instead of explaining late fees, over-limit spending charges, minimum payments and the like, they are just explain the things college students want to hear. Ask the representative questions, read over policies and know what you sign up for before saying yes.

2. Understand the Minimum Payment Scam

By just paying the minimum payment each month, it is almost impossible to pay off the entire amount. Interest is added every month, making the balance ever higher. The minimum payment just ensures the company is getting repaid at least a portion of its money, but it is just a scam to earn more money in the long run. When possible, t is best to try to pay off the full balance each month or at least pay more than the minimum balance each time.

3. Avoid opening too many cards

It is easy to sign up for store credit cards to save that extra 10% on a purchase. Though a consumer may turn around and pay off the balance, the account is still open. By having too many accounts open, even with a zero balance, it can hurt your credit score.

4. Check credit card statements regularly

Identity theft is a very real and serious problem. Card numbers can be compromised at a local store, restaurant or while sitting in public. Never share personal information over the phone while in public settings; it is easy for a dishonest person to eavesdrop and write down the necessary information. if an irregularity is spotted on the statement, identity theft can be caught quickly and easier than if the problem is caught months later.

5. Don't use a credit card like it is cash

Though your parents may use their plastic cards every day, that doesn't mean you should. Credit and debit cards are different; using a debit card is actually like using cash. On the other hand, credit cards require you to pay off the balance at the end of the month after interest has been added. Do not charge too much at a time because it makes it very difficult to pay off the total balance.
Works Cited

Tompor, Susan. "Tips for College Students on Credit Card Use." USATODAY.COM. Gannett

Company, 22 Aug. 2012. Web. 29 Sept. 2015.

Union, Consumers. "Credit Credit Card Tips for College Students." Back to School Tips for

College Students (n.d.): n. pag. Consumers Union. Web. 28 Sept. 2015.