Credit card tips for college students 2020（1）

Why good credit is important

Your history with credit cards is compiled into a credit report and rated with a credit score.

Lenders, employers, landlords, insurance companies, and even service providers all use your credit report or credit score (or both) to decide whether to approve your applications at what cost. See Credit Report and Valuation Overview.

If you have too much credit card debt, it can leave negative marks on your credit report and reduce your creditworthiness. If you have a history of missing payments, it will also decrease your credit score. This could prevent you from getting a loan or an apartment. A landlord can request that you have a co-signer. An employer may not hire you. A high deposit may be required for utilities before the services are switched on.

A good credit history is important, especially if you're just starting out. Whether you have this good credit history depends on how you use (and don't use credit cards) during your college years.

College Credit Card Tips

Don't be selected by a credit card .

If you're not sure it's a good deal, don't sign up for a credit card just to get a free T-shirt or coffee cup. Read the terms of a credit card contract you receive. Check the fees and interest rates and compare them with other card offers you have received. Then select the credit card that is best for you.

The best student credit cards have no annual fee, a low interest rate and a low credit limit.

How do I choose a credit card?

A credit card is enough . Even if you might be tempted to apply for any credit card that gets in your way, you should keep your cards to a minimum at this point. Each new credit card application causes a drop in your credit score. Plus, the more credit cards you have, the higher the risk of taking on too much credit card debt.

How many credit cards are too many?

Just calculate what you can afford. So far, you've probably assumed that credit cards are meant for things you can't afford at the moment, but you probably can afford later. Using a credit card if you can't afford is the quickest way to build a balance you can't repay. The minimum payments that make it "easier" to lose balance actually make it more expensive. You could end up paying '100 for a 20-dollar pizza.

Know how much you can afford

Pay your balance in full every month. If you have a habit of paying off your balance when you receive the bill, avoid paying credit card debt. In addition, you only pay for what you purchased, not for the additional fees that credit card companies charge if you don't pay in full.