The following extract is from a series of money management articles, videos and tips about Student Loans …
Anyone who has ever shopped in a retail or department store knows how easy it is to apply for a credit card. A highly effective marketing strategy is to offer the 10% off the purchase price to lure customers into applying. Credit card companies want you to put away your own money and use their MasterCard or Visa credit cards. It is a buy now and pay later world. For anyone who recently turned eighteen, this can seem like a tremendous power, especially if cash is limited due to college expenses.
Instant approval credit cards may offer an easy option when you find yourself desperately needing 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 problems. Student credit card debt is out of control. Students are inundated with bank credit cards, MasterCard or Visa credit card offers and many do not stop and consider the ramifications of how easy it is to abuse their use.
No one is arguing that higher education is costly. Tuition, room, board and associated fees can wipe out cash reserves very quickly. As a student, you may have such an immense class schedule that finding part-time work is practically impossible. This is especially difficult if you are involved in school activities, such as sports or academic organizations. Most parents cannot afford to pay for all the extra expenses incurred by their children as students, not to mention if there are other non-curricular expenses and luxuries wanted.
It is important to note that when you apply for a college student credit card and a card is issued, you must abide by the lender’s terms. Only use the line of credit as an emergency source of funds should you find yourself in need. You do not want to find yourself with maxed out credit cards and no way to make the minimum monthly repayments. Pay attention to the fine print and the rates of interest you will be charged.
Do not apply for a credit card every time you walk into a store. Don’t fill out an online credit card application every time you are surfing the net. While you want to have a good credit rating, each credit card you apply for goes against your credit score and can begin lowering it dramatically. There is a fine line between improving your credit rating and seriously hurting your credit score. Be smart, build credit ratings, use your credit wisely and you will become financially responsible.
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