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Credit Card Tips for College Students - Incredible Ideas

Updated on April 4, 2012

Credit Card Tips for College Students

These exclusive credit card tips for college students will definitely help every student to use their credit cards cleverly and own an incredible personal finance. The statistics say that around 80% of the students graduate college with a credit card debt. This can severely affect their future. Graduating time is the fundamental stage a person start off with his professional life. Even a minor asset we own during this time will get magnified in future. Its just like a principle, ‘The 20% assets you have during the starting time amounts to be the base of 80% of what you own at the saturated stage’. So starting up with a credit card debt, as a college student itself is not a good very good idea. Following are some incredible credit card tips for college students, the crux of this article lies in changing the philosophy of credit card and revive you out of the advertised-appearance of credit cards.

#1 Tip: Avoid Withdrawing Cash with Credit Cards

Never see the credit card as a ‘Loan Service’, and don’t withdraw cash from the credit card just as you do with you ATM Debit cards. There are transaction charges for this and the worse part is that you’ll have to pay the interest for that cash from the next day, this could range from 2%- 3%! Only think of getting cash like this in very urgent situations.

#2 Tip: View Credit Cards Only As a Payment Mechanism

View Credit Card just as a plastic card that can be used instead of money. The bank name or their attractive advertisements shouldn’t come to your mind when you take it out of your wallet.“If you purchase something using credit cards they usually give you 50-55 days time to repay it before counting the interest”. This is the best part of credit cards; all the other extended features are possible credit card traps. You’re safe as long as you play within this boundary. For college students paying extra money as interest on credit cards is a waste since the money is more or less spent for unproductive causes like entertainment, games and other enjoyments. If you use an android phone, buying a credit card swiper for the android would be a brilliant step to take.

#3 Tip: Pay Your Credit Card Bills Correctly

You might be wondering, “Everyone knows this tip!” Sure! But there is something more to learn about this with credit cards. As mentioned earlier, you get a certain amount of interest-free days before you have to pay back the money. If you make the complete payment before the interest-free days end then you will continue to get this offer for the next purchases. If you make the payments partially for the first purchase, interest will be calculated for the balance amount to be paid. The bad part: you don’t get interest-free days for you next purchases. The worse part: You will be charged higher interest (up to 40% higher) for the next purchases + other late-payment fees. Being unaware of these conditions is well enough to ditch you in debt trap as soon as you graduate college. This condition is very undesirable.

Extreme Tip: #4 Somehow if you fall into a Credit Card debt while at college itself, take a Personal Loan to pay it

Suppose if you ended up owing a good amount as debt to you credit card company, you better call them up and request to convert the pending amount into a personal loan. This is a good idea since personal loans have very less interest compared to credit cards and they also give you more repayment time. After doing this, you can use your current credit cards as a fresh one.

#5 Reduce the Number of Credit Cards – Really good for college students

Taking additional credit cards can increase your credit score. This happens because the company thinks that you are up to borrow more money. Keeping single credit card is just enough. May be you can keep an extra card for emergency needs. But having more than 2 credit cards is unwanted especially for college students. If you keep seperate credit card for doing online purchases, cancel it and buy a cheap credit card swiper. If you pay you bills on time then you can bargain for a reduced interest by the time you graduate from college. Banks are usually ready to reduce the interest rates for people who pay their bills regularly on time.

#6 Be Clever while choosing a Credit Card

Don’t fall for unbelievable offers given by the companies and don’t fall for the compulsion of your friends. Before taking a credit card it’ll be very useful if you conduct a small research on their background. Make comparisons of their interest rates, credit card fees and incentives. Mind that you choose a credit card for the long run and you definitely don’t want to loose your money just by paying accumulated interests. Conduct comparative studies of conflict –settlement measures offer by each company and make a good final selection.

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    • vydyulashashi profile image

      vydyulashashi 6 years ago from Hyderabad,India

      The idea of having less number of pretty cards is great. yeah if we run into debts on many credit cards we will land in nowhere.

      Great instructions.

      God Bless You!