Student Loans - What You Need to Know Before Applying For A Credit Card
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Before you make a decision to apply for a credit card to purchase those new items you’ve been eyeing in the shops, you may want to take a step back and carefully think about your purchase. Being away from home at college is a liberating time. You are surrounded by exciting people and many new opportunities and have a new set of responsibilities placed onto your shoulders. Applications for MasterCard, Discover and Visa credit cards are all around you. We live in an age of “instant” gratification.
Instant approval credit cards may offer an easy option when you find yourself in desperate need of school supplies or in need of the basic essentials. However, far too often the ability to easily apply and get one can lead to overwhelming financial difficulty. Student credit card debt has spiralled out of control. Students are inundated with bank credit cards, MasterCard or Visa credit card offers and many do not give adequate thought to the consequences of how easy it is to abuse credit.
No one is arguing that higher education is expensive. Tuition, room, board and associated expenses can wipe out savings accounts very quickly. You, as a student, may have such an immense class schedule that working part-time becomes impossible. This is especially difficult if you are also enrolled in school activities, such as sports or student organizations. Most parents cannot afford to pay for all the additional expenses incurred by student life, not to mention if there are other non-curricular expenses and luxuries wanted.
The key to understanding how to use a credit card, is one based on “need” only. Most students must have some form of funds in case of an emergency and it comes down to the student knowing the difference between an emergency and a simple desire. Apply for a credit card and when it arrives, put it aside for real emergencies. Do not go around applying for every credit card offer you receive. Pay attention to the interest rates and any associated fees that the lender states in their terms and conditions.
Apply for a credit card and use it with great caution. Do not continuously apply for those college student credit cards just because you can save 10% off your purchase. Eventually, you will have to pay back the balance and you may not have the credit available should a real emergency happen. Try to remember that going out with your friends for a night on the town does not qualify as an emergency!
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