Purse Ho
The DSU student uses a credit card at the school bookstore. Getting used to credit cards while in school can be beneficial in life after college. Photo by Yara Al Badri.
Having a credit card doesn’t automatically mean getting into debt; there are many rewards associated with owning a credit card. You just have to know how to use it wisely.
Entering a student’s life comes with limits on liability, and many students probably don’t think about getting a credit card. Here are reasons and tips to start using a credit card during your college days.
Build credit
Why would you want to start building your credit in college? It will only benefit your future if it is done right.
Kaplan Sanders, assistant professor of finance, said having a “strong credit history†will make it easier to buy a home someday. It will also show responsibility and make it easier for you to borrow money in the future if needed. It shows that you are a trustworthy person who knows how to manage your money.
“I think students should have credit cards if they are money conscious and responsible, because it’s never too early to start earning credit, but it’s not worth getting into debt. if you’re not responsible for the money, â€said freshman Kaya Newman. major in business management from Herriman.
The first step in creating credit is to start using a credit card. According to Real Simple, avoid debit cards as they do not benefit you in any way. Credit cards have benefits if used correctly, and they also improve your credit score for a more secure future.
How to use a credit card
Using a credit card is no easy task; you need to be aware of your bills and understand exactly how much you are spending. In order to earn the potential rewards, it’s important to make sure you know how to use a credit card.
“If you want to get a credit card, you have to start with a level of responsibility [and] Make a commitment to spend less than what you earn, â€Sanders said. “Make sure your checking account can pay off the credit card [balance]. “
According to Investopedia, paying your bills on time is the most important thing to remember about a credit card. If it’s easier for you, you can set up automatic payments, which is when your personal bank account is automatically billed so that you don’t miss any payments.
“I refund my credit card payments as soon as I can, and it’s like I’m being rewarded for buying things that I need,†Newman said.
Set a reminder on your phone for each month one week before your payment is due. Make sure you keep track of your spending so you can pay your credit card payment properly.
Kyle Wells, the Dean of the College of Business, said: “Use [a credit card] for daily and regular purchases and pay it every month on time. It won’t take too long to establish a respectable credit score. If you’re wrong, there are plenty of ways to get back on your feet, but it all starts with the discipline of following rule number one.
Do your research
There are a lot of things you need to consider when deciding to use a credit card. Here are some things to watch out for:
- Annual fees
- Benefits offered
- Interest rate
- Credit limit
- Places where the card is accepted
Sanders said it’s important to read the fine print on a credit card before using it. Each card is different and offers different entities of benefits, penalties and prices.
Make sure you do your research and choose a credit card that best meets your needs. You can find out more about the different types of student credit cards on NerdWallet.