What You Need To Know About a College Student Credit Card

You’re walking through the quad on the way to class on a bright Tuesday afternoon. There’s a table set up, stacked with goodies. As you walk by wide-smiled gentlemen asks if you would like a free gift. Of course, who doesn’t want free gifts? All you have to do is fill out an application for a college student credit card. A college student credit card sounds great right about now. You’ve already blown this month’s check from your parents and it’s only the 3rd day of the month. You fill out the application and three weeks later there’s a shiny college student credit card in the mail with your name on it. Before you go on that shopping spree, there are some things you should know.

What fees associated with the college student credit card? If you did not receive this information when you applied for the card, call the number on the back of the card and ask. There might be an application fee, processing fee, and annual fee associated just for making purchases. You should never have to pay money to be extended credit. If your card has any of these fees, you should cancel the card and cut it up immediately. What does the company charge for late fees and over-the-limit fees? What happens to your interest rate if you are late on a payment? This is very important information to know before you begin using your card.

How do you plan to pay the credit card balance each month? It may sound counter-intuitive, but you should never charge more on a credit card than you will be able to pay in the foreseeable future. If you are late or miss a payment, not only can it hurt your credit, but the minimum payment will increase each month making it increasingly difficult to pay the even the minimum amount.

Free goodies might sound like an even exchange for unlimited purchasing power. Make sure that you are well-informed about the terms of agreement associated with the card and that you have a way to make the payments on time each month.