Show Credit Cards Financial benefit or burden Aaron Little Contributing Writer The average college student is bombarded with credit card offers otTers They use phrases like no payments for the first year 0 percent introductory rate and low interest rates What do these credit cards really offer college students Are they a good way to establish credit for our future or are they merely traps for young and inexperienced college students Credit cards are an important product of today's living They help decide what types of loans we get what interest rates we have to pay and it could also prevent us from getting a car or home Our use of credit cards affects a system called our credit score A credit score is a number that ranges from to As we apply to college and try to access funds for school we become the targets of credit credit card card companies compani s. s In fact the there e are usually institutions offering credit cards to us students as we are introduced to the theother theother theother other amenities on campus Due to the rush to get credit cards in our hands people fear that we will max out the cards in just a few months According to Michelle Singletary of NPR three out of five students max out their credit cards in their freshman year and then use student loans to pay payoff off the debt You have heard the ads Bad credit No credit No problem we can help you Bad credit happens when we reach our credit card limit and still use our card It also becomes worse when it is the end of the payment period and we are unable to pay pay the minimum balance It comes with little warning like a pouncing lion in the savanna When we have bad credit we end up paying higher interest rates not only on credit cards but on every everything everything everything thing else that uses our credit score to determine our rate of interest This applies to paying higher interest rates for a car loan mortgage or other credit cards If our score is too low lo loany any loan application may be denied altogether Credit cards are beneficial to students in a variety of ways The most common way is for college students to pay for their education In the long run if we pay the minimum balance each month we will pay more than others on tuition It is also beneficial for college students to have credit cards for a car and a home It is necessary to have credit cards so that business can know what to expect on payments I I 1 have been given some advice from my parents and other financial advisors that I would like to share Be careful not to over use your card A good start is to get the offers and find a card with the lowest interest rate and highest credit limit Another good idea is to spend only what you have A safe rule of thumb is approximately 35 percent As long as that 35 percent i is within your range to pay payoff payoff payoff off you can pay it at the end of the month This isa isa is isa a great way to keep your credit under control When properly used credit cards can be very beneficial to college students By knowing how to properly use them you youcan youcan youcan can establish good credit and build up a good financial future With good financial strategies credit cards can prove to be beneficial for your future |