Avoiding College Credit Card Traps

Congratulations college freshman! You're about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.

One thing they may have not warned you about is how quickly you'll be bombarded with credit card offers. You'll find them in your textbooks, in your mailbox, and on every campus bulletin board. You'll be offered free DVD's, t-shirts, music downloads, and more in return for completing an application for credit.

Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD's, cigarettes, books, etc. - those small purchases can add up quickly.

Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.

Here are 7 tips to help you manage your college credit card needs:

1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.

2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.

3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can't pay off the balance, always make more than just the minimum payment.

4) Pay your bills on time, otherwise you'll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.

5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.

6) Less is better. You don't need more than one or two cards at the most. The more you have the more tempted you'll be to use them or to "max" them out.

7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.

Using a credit card is a big responsibility whether you're a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.

© 2005, http://www.yourfreecreditreportnow.com

Autho r: James H. Dimmitt
James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other bonuses by visiting http://www.yourfreecreditreportnow.com

---

3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

In Less Than 30 Days. "What can you do to increase that set of three numbers on your credit report that can be so important with your... Read More

Different Types of Credit Cards and Features - Part 1

Just as there are too many credit card companies to count, there seems to be just as many different credit cards, all claiming to offer you the... Read More

Useful Tips on Borrowing Money

Here are some useful tips on borrowing money. Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan... Read More

Beware of Bogus Credit Repair Companies!

So-called "credit repair" companies claim they can remove negative information from credit reports. Advertising as "Credit Advisors," "Credit Rating Correction Services" or "Credit Consultants," they trumpet variations... Read More

How To Choose A Credit Card

Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or... Read More

Trade Credit: How to Determine if You Should Offer Net-30 Terms to Your Customers

What is trade credit?One of the major differences between consumer and commercial transactions is that most, if not all, consumer transactions are paid in cash or by... Read More

Your Consumer Rights

If you have ever fallen behind on your debts you already know that dealing with your creditors can be a hassle. Sometimes it can be downright humiliating.... Read More

What is the Check 21 Act?

Check 21 is the common name for the Check Clearing for the 21st Century Act. It's new legislation that was recently passed by congress and made a... Read More

My Student Credit Card Adventure

And some practical advice too!My first credit card?I remember my college days when it seemed there was a credit card advertisement on practically every bulletin board on... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when you might encounter a financial situation that is beyond your scope which is when a session with... Read More

Credit Establishment 101

There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus-Experian, TransUnion and... Read More

Commercial Collections And Credit Granting

It is estimated that billions of dollars in delinquent commercial credit is currently being carried on the books of both American and international businesses. This figure changes... Read More

Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!

Here's a dirty secret, today's "non profit credit counselors" are often just front organizations paid lucrative commissions by creditors to keep consumers from declaring bankruptcy!In the "debt... Read More

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?Customer wants to pre-pay for a yearDomain Name Registration for 5 years or moreOrders using free... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to receive if you have bad credit because lenders focus heavily on your credit score and history of... Read More

Credit and Banking Money Saving Services

The first rule when applying for banking and credit services is to always read the fine print and to understand all of it. Read up, take it... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to your statement you find a "convenience check" included. It may already be filled out with a dollar... Read More

Compare Credit Card Offers and Reward Yourself

Here's a simple system on how to pay zero interest and get tons of free stuff. Almost everyone uses credit cards. But only a few thousand people... Read More

Identity Theft - How to Protect Yourself

"Like the tan? I got tons of sun on that Caribbean cruise. First class tickets to Florida and back! Nope, not an airline upgrade. 5-star service all... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time low right now and if you aren't getting the best deal from your credit card company then... Read More

What Are The Most Common Credit Card Mistakes?

Now in a world with so many easy to get credit cards it can be easy for someone who is a first time credit card holder, or... Read More

Looking for that Low interest Credit Card?

If you have been shopping around for a Low Interest Credit Card you will notice that the UK market is awash with Credit Card companies offering low... Read More

Consumer Credit Reports

A consumer credit report is a factual record of an individual's credit payment history. It is provided for a purpose permitted by law: to help a credit... Read More

Credit Trap: What They Dont Tell You About Credit Cards In College

In industrialized nations, going into debt starts early. It's easy for an eighteen-year-old to get credit cards and fall into debt, especially if they're headed for college.I... Read More

First Major Regulatory and Legislative Victory of 2005 for Creditors and Consumers

Under the Fair Debt Collection Practices Act, collectors are not allowed to disclose a consumers past due debt to anyone other than the debtor and in some... Read More