As a student, the idea of getting a credit card to cover all of your expenses may be an exciting one, but it is also a step you should take carefully, after considering your needs and capabilities.
There are three basic steps to the process:
1. Setting a Budget – Before you can decide what type of credit card you need or what limit you need on your credit card, you need to know your monthly expenditures. It's time to do a little math. Start with what you have to pay for your living expenses every month. This would include rent, utilities and food (both what you put in your fridge as well as what you are going to be eating out). Next add the other items you need to purchase over the course of a month like gasoline or for a bus ticket, and any other monthly items you have to pay for. Adding these together is the base of your budget. You can add to this amount the money that you would like to be able to spend on extra things like entertainment. Make sure you make enough to cover these expenses, and then stick to the amounts you have written down.
2. Do You Have Will Power– A lot of people can write up a budget and like to pretend they will stick to it. But as soon as they pass that great new fashion accessory or DVD in the store it's in their hands and they are on their way to the cash register. If you are one of these, you may want to be very careful when considering a credit card that you don’t get one that will put you deeper in debt. There are pre-paid credit cards that you have to charge with money before you use them. For those with less spending will power these are often a way to avoid getting in over your head in debt. If you can handle money and keep to a budget, a regular credit card will do just fine.
3. Take Care of the Card – Do your shopping, find the student credit card that is best for you, but then make sure to take good care of it. Any credit card you get will have rules that go with it. Make sure you know the rules and requirements. Always meet your due dates for payments. If you don't not only will you get a late fee, and possibly an increase in your interest payments, but also it will end up being a ding on your credit report that could take years to clean off.
There are three basic steps to the process:
1. Setting a Budget – Before you can decide what type of credit card you need or what limit you need on your credit card, you need to know your monthly expenditures. It's time to do a little math. Start with what you have to pay for your living expenses every month. This would include rent, utilities and food (both what you put in your fridge as well as what you are going to be eating out). Next add the other items you need to purchase over the course of a month like gasoline or for a bus ticket, and any other monthly items you have to pay for. Adding these together is the base of your budget. You can add to this amount the money that you would like to be able to spend on extra things like entertainment. Make sure you make enough to cover these expenses, and then stick to the amounts you have written down.
2. Do You Have Will Power– A lot of people can write up a budget and like to pretend they will stick to it. But as soon as they pass that great new fashion accessory or DVD in the store it's in their hands and they are on their way to the cash register. If you are one of these, you may want to be very careful when considering a credit card that you don’t get one that will put you deeper in debt. There are pre-paid credit cards that you have to charge with money before you use them. For those with less spending will power these are often a way to avoid getting in over your head in debt. If you can handle money and keep to a budget, a regular credit card will do just fine.
3. Take Care of the Card – Do your shopping, find the student credit card that is best for you, but then make sure to take good care of it. Any credit card you get will have rules that go with it. Make sure you know the rules and requirements. Always meet your due dates for payments. If you don't not only will you get a late fee, and possibly an increase in your interest payments, but also it will end up being a ding on your credit report that could take years to clean off.
Stephen Sikes is the owner of the credit card comparison site
www.CreditCardWave.com
Visit the site to read articles and reviews on the best ways to utilize credit cards.
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