Students and Credit

It seems as soon as a university application is accepted credit card offers for students start arriving in the mail. But starting out on the road to your future does not mean starting out on a lifetime of debt. There are lots of ways to get through school without piling up debt which could take years to pay off. Do you really want to be paying off a pizza years after you graduate? Here are a few things to think about before you sign your credit card application:

• Use a debit card then your spending is limited to what is in your account.
• Plan your ATM withdrawals so you minimize withdrawal fees.
• Use your financial institutions’ ATM to save on user fees.
• Make a budget for your living expenses and stick to it, track your expenses each month.
• Use coupons, go to movies on cheap night, go to free campus activities.
• Make sure you have the best possible cell phone deal and do not go over your limits.
• Buy used text books and you can save hundreds of dollars.
• Only use a credit card for emergencies (this is not pizza). If you use it make sure you can pay it off when the bill comes.

If you do go the credit card route it is important to know a few things:

• This is not free money, it is a debt, you will incur interest charges on your purchases if you do not pay them off each month by the due date.
• Pay more than the minimum payment each month if you cannot pay off the full balance.
• Pay bills on time.
• Never exceed your credit limit.