Tips For College Students on How To Manage Their Credit Cards

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Today, many college students turn to credit cards to finance their college education. They use them to finance everyday needs such as books and tuition. However, this can result in an excessive amount of debt in the end.

Many people are not aware that their bill-paying habits can greatly affect their credit history. Graduates do not think that they need to worry about their credit score until they apply for a mortgage and buy their own house. Thus, it can become shocking news when they find out that employers, property owners, and utility companies can have access to their credit scores as part of their application process.

Indeed, learning how to manage credit cards, student loans, and other kinds of debts is very important for college students. When you have established your financial skills as early as possible, you can work to build a good credit standing. This can affect your lives now and in the years to follow.

Your credit history begins the moment you own the first credit card. With good credit, it can help college graduates save money in the following events:

Applying for a Job 

Some employers check their candidates’ credit history as part of the hiring process. With many applicants vying for the position, a solid credit history at Easy Find Singapore can give you an advantage over the rest.

Insuring Home or Car 

With good credit, you can save money on auto and home insurance. This can be through a strong credit-based insurance score. 

Renting a House or Apartment 

Property owners would always rent their space to applicants who have the best credit history. In the majority of the urban areas, available housing is at a premium. Those who have a good credit history can be able to find an apartment to rent. Sometimes, they can avoid a large security deposit. Also, you can avoid the need for the lease to be signed by a co-guarantor like an employer or your parent.

Securing Loans

With a better credit history at Easy Credit Singapore, it will be easier for you to get a mortgage or car loan with a competitive interest rate.

Signing up for Utilities 

Cable, local phone, gas companies, moneylender Singapore, and electric companies will waive cash deposits for customers who have good, solid, and established credit histories.  Now, here are some tips that you can try on how to develop an effective financial plan and manage your money accordingly:

Developing a Financial Plan 

For you to have a good credit rating, students and parents must be able to work together on a financial plan for college from the very start. Specific educational expenses such as lodging, tuition, books, and fees can be waived as good debt. This can be covered through grants, student loans, and others.

Meanwhile, daily college expenses such as transportation costs, personal needs, telephone, and other incidentals from money lender Singapore are the type of expenses that you must not charge on credit cards.

Indeed, college is the first opportunity for you to make independent financial decisions. Carrying an unpaid and high balance is one of the quickest ways to accumulate debt and fall behind on timely payments. If you have a plan to use the credit card regularly, make sure that you know the limits. Know ahead of time where the money will come from so you can pay the bill at the end of the month.

Whenever you decide on having a credit card, see to it that you read the fine print. Next, shop around for the best terms in the market. Opt for cards that have an annual percentage rate at or below 15%. Next, opt for cards that offer a grace period of at least 25 days. Finally, opt for cards that feature no annual fee.

To develop good financial habits, make sure that you plan ahead of time and stick to your budget. Indeed, living within a budget is an essential life skill to master.

Next, see to it that you pay your credit card bills on time. Late payments can incur higher rates and it can be costly. It can include still penalties and this may result in increasing the annual percentage rate. Furthermore, paying bills promptly will help you start building a good credit history.

Make sure that you use your credit card responsibly. Remember, credit is a loan that you need to pay with an interest.

Finally, always keep in touch with the creditors. If you change residence and you forget to inform your creditors, a series of lost bills can lead to having a black mark on your credit report. Then, this black mark will stay on the report for seven years that can lower your credit score. Most college students today at the campuses have computers. As such, take advantage of the electronic billing and payment so you can avoid lost bills.


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