How to Avoid the Credit Card Mistakes Students can Make
When it comes to getting a credit card for the first time, I would highly advise that students do their research on the credit card market before they actually apply. When I say research, you should also look into how people generally make mistakes and how you can avoid them. If you are aware of the mistakes, you will be better off with that card in your wallet.
Maximizing the Limit
Just because you get a high credit limit, it does not mean you have to go out there and spend it all. Many people get the mindset that they think their credit card is just a piece of plastic and they just spend and spend. When they get that credit card bill in the mail, they forget all about the spending they have made in the past. This is why it is important to keep track of your expenses and not spend your limit because you have it.
Taking out cash
One of the worst things you can do when you apply for a student credit card is take out cash via the ATM. The bad thing about a cash advance is that the credit card companies charge you a very high rate. This rate is generally around thirty percent. If you need cash, I highly advise you stay away from this route. You will only be hurting yourself in the end.
As you probably know by now, a credit card is filled with many fees. If you pay your credit card bill late, you are going to be hit with a fee. This fee can generally be anywhere from a few bucks and on. It will all depend on what company you have a card with and what kind of card you have. The important thing here is to make sure you pay your card off in full.
Just paying the bill
Unbelievably, many people just pay their bill when it comes in the mail without looking at it. When you get your bill in the mail, make sure that you look over your bill before you pay for it. The reason you want to do this is because if someone gets a hold of your credit card, they can make some unauthorized purchases. Remember, you are not reliable for the purchases you don't make on your card.
Overlooking the terms
Before you apply for a card, make sure you know exactly what your card is and how it works. Some people apply for a card, get it and realize it's not what they wanted. One of the biggest mistakes comes with a cash back card. For example, a card might put a limit on the card saying you have to pay x amount of dollars before you get cash back. This is a term and condition that most people pass up.
There are so many mistakes that all of us make but if you can see these mistakes before you apply for a student credit card, you can save yourself from making them. As long as you use your head and follow these tips, you will be on the right path to a great credit future.