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Managing Student Credit Wisely

Brad Stridgeon -- It's important to establish a good credit score as early as possible, since the credit score depends on how long an individual has been in the credit line. For many this begins in college.

Establishing a good credit score is very important in qualifying for a fair slice of financial assistance offered in the market. This includes any and every application for a credit card, loans, mortgages, and much more that goes way beyond the scope of this article, which primarily is about student credit.

Paying debts is something not many people want to think about, let alone students who, as yet, have not incurred any debts that they need to repay. So it isn't necessary to think that far ahead. On the contrary -- it is extremely important -- consider it a major stepping stone, or part of the transformation into the adult world.

This is the reason why it is important to establish a good credit score as early as possible, since the credit score depends on how long an individual has been in the credit line as well as their obedience in paying their monthly commitments. Financial experts also advise students, during their college years, to start establishing a good credit score. Parents can help and advise their children by assisting them with any applications and by letting them manage their own finances. In some circumstances, it is also worthwhile to let them pay the monthly payments so they will know the seriousness of managing their own finances.

Nowadays, there are many financial institutions offering student credit cards. They all differ in their promotional offers as there is always tight competition between credit card providers. Quite often, in order to inspire students in maintaining a good credit attitude, they usually impose reward programs. This program works when a student has kept a good credit record by abiding to the payment schedules constantly and by making wise purchases with their credit card so they will be inspired in maintaining a good credit attitude.

Furthermore, the following are the tips in managing student credit wisely:

-- Create a spending plan. This certainly doesn't mean, plan a party and max your card out! What you need to do is allot a specific amount per month that you can afford to pay. This is helpful in preventing debts and interest rates to pile up each month whenever you have failed to pay it.

-- Only ever have one credit card. Remember that as a student, you are just starting to learn about the seriousness of managing your finances. Keeping two or more credit cards will just make your finances complicated as you need to remember different payment terms each month for the different credit cards used -- not to mention have to money to repay what you have borrowed.

-- Check your credit report often. This serves as your training in understanding financial terms in the business world. Also, by doing this, you can check if there is any mistake in your credit or payments. Mistakes can, and do happen. Make sure to report any inconsistencies found so you can monitor your credit if you are exceeding your limits.

The simple tips mentioned above are very helpful in managing credit wisely. Just remember that once you receive your plastic card, it is of the utmost importance that you don't be impulsive in using it since the primary benefit of having it is to establish a good credit score. On the other hand, it is also a good training for beginners as consequences are less heavy when mistakes are committed while maintaining a student credit card, as compared to the heavy consequences when these mistakes are committed in the real financial world. Just keep in mind to have a sense of control over your expenses so you will have good credit score in the future!

Managing student credit wisely is an art, just as it is for first time cardholders.


Brad Stridgeon has worked as an online writer for several years, usually writing for other people. He maintains a Web site about credit card management where you can check out some interesting info about more credit cards that helps keep people informed.

© 2010 Brad Stridgeon

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