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Tips for Using aCollege Credit Card
A college credit card has become almost a necessity for students
whether they are used strictly for emergencies, education-related
expenses, or travel costs. However, young adults need to understand
how to prevent a handy financial tool from getting out of control,
which is sometimes the case.
A college credit card comes with many benefits, but many students
aren't aware of how to reap those benefits without facing the potential
dangers of credit card abuse. There are some strategies young adults
can use to achieve that balance. For example, students (and adults,
for that matter) should not use their credit cards to obtain cash
advances. These cash advances may seem like amazing conveniences,
but typically there is no grace period for paying them back as there
are with other purchases. That means interest begins accumulating
the moment the money is withdrawn. Plus, an additional cash advance
fee is added onto the amount. Students should also practice responsible
credit card usage. Ideally, no credit card user would charge more
on a card than he or she could pay back in full when the bill arrives.
Of course, that's rarely the case. Even if a student cannot afford
to pay the entire balance on a college credit card, he or she should
pay as much as possible and should only pay just the minimum balance
when it is absolutely necessary. Otherwise, he or she will be paying
for those college purchases for over a decade.
College Credit Cards = Free Gifts
Another important tip when it comes to obtaining a college credit
card is that no student really needs more than one. While having
a single college credit card can have its advantages, having multiple
cards is a recipe for financial disaster. What's worse is that many
credit card companies try very hard to get students to apply for
their cards, regardless of whether they already have a card or have
a steady income.
The most common tactic used by credit card companies is to offer
free gifts to students who sign up for their cards. According to
a 1998 Public
Research Interests Group (PRIG) survey, students received a
wide-range of gifts, including T-shirts, soda, candy, coffee mugs,
and more just for completing applications.
Additionally, these credit card companies provide bonuses to student
groups who set up and work at the tables. These groups can earn
money per completed application or flat rates per day for their
efforts.
References and Links
1. More tips for responsible college credit card use can be found at
the Minnesota
Society of Public Accountants' web site.
2. Additional information about students and credit cards is available
in “Student
Credit” and “Consolidate
Credit Cards”
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