Build Your Credit and Be a Full-Time Student

Everyone wants to be successful, and for many people, graduating with a college degree is a big step towards that goal.  A lot of students register for twelve or more college credits per semester; a twelve credit semester categorizes that student as “full-time”.  That being said, taking on a full-time schedule is no cakewalk.  When you add the responsibilities of housing, transportation, and other various college costs into the mix, the title of “student” becomes even more of a task to uphold. However, just like anything else in life, there are ways to be successful in your student career.

Now, if you’re wondering how your credit score plays into being a student, think about where you are going to live.  When you apply to rent an apartment or a town house, most of the time, they will run a credit check.  The same goes for purchasing a car, whether it is new or used.  Student loans are also approved and denied based on credit.  Unfortunately, due to the economy right now, banks are tightening up and taking fewer “risks,” making it hard for creditable people, especially students, to get a credit card or a student loan.  The answer to this problem is simple.  Although some banks are holding back, many of them are offering student credit cards.

What are these student credit cards?  It is right in the name, they are made specifically for students.  Banks realize that building your credit is crucial and while attending school it is not easy.  That is why they offer these special credit cards.   The student cards have low limits, low interest rates, and fewer requirements to be approved.

Having a credit card, student or not, should not be taken lightly.  Credit card debt will damage your credit score, to say the least.  The whole purpose here is to build your credit.  A few things you should focus on are listed below.

Many banks offer student credit cards, so look around.  Look over all the terms and conditions.  If a certain bank is offering rewards and bonuses it could be your best choice.  Every little bit helps.

Know your limit.  Set the limit on your credit card to something reasonable.  If you have a job, set your limit to something that reflects your income.  By knowing your limit, you won’t exceed it and in turn you won’t be charged a fee.  Also, by setting your limit accordingly, you will have the cash to pay your bill off right away.

With that being said, only make purchases on the credit card when you have to cash to pay it off.  This goes along with setting your limit in relation to your income.  By having the cash, you are actually using the credit card as a tool.  It is building your credit and that is the goal.

Everything with credit cards is connected.  Don’t get stuck paying annual fees and don’t leave a balance on your card.  When you can pay your balance off right away, you are in a good position.  As stated above, know your limit and only purchase what you can pay for.

Building your credit score with a student credit card will help you in the long run.  For example, having a great credit score from your credit card will put you in a prime position for the house or apartment you’re applying for.  That goes for purchasing a car, as well.  When the dealer sees that you have good credit, it will boost your chances of getting the car.  As for school, a good credit score can lead to a student loan that will help with all of your college needs, such as tuition, books, food, etc.  All college students should consider student credit cards, however they should be taken and used very seriously.

This article was written by Erica Stanley. Erica is a frugal blogger who enjoys giving advice on the internet. She works to provide the best SEO Services


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