Using Student Credit Cards to Build "good credit"
TIPS:

1. Create a BUDGET, and stick to that BUDGET. You know how much money you are going to earn each month, so create a BUDGET according to your KNOWN income and always know exactly what you PLAN to charge on your credit card each month. Then, stick to that plan!

2. Use your student credit on a regular basis, every month, TO MAKE SMALL, PLANNED PURCHASES. Then, MOST IMPORTANTLY, pay off your entire balance each month.

3. Instead of writing checks, use your student credit card when possible, as credit transactions get reported to the credit bureaus, checks do not. Again, use your credit card only when it fits in to the PLAN you have in sticking to your BUDGET. A few examples of these reoccurring expenses are your:

-Monthly telephone bills
-Groceries and food
-Subscriptions
-Precriptions
-Utility Bills

**Many companies allow you to sign up for online bill pay, where your credit card will be charged on the same day of each month. 

4. Pay your entire balance 7 days BEFORE the due date on your bill.

5. Your goal is to get a student credit card in your "own name" and make the account look like it is being "used," but not "over-used." When you do so, on a consistent basis, your credit score will rise as your debt ratio will be low while your usage will be low. Also, your payment history will be consistent and on time... both of which will raise your credit score over time.

6. Common mistakes you should try to avoid include: -Impulse Buys (where you randomly purchase items you have not budgeted or planned on).
- Overspending.
-Losing track of your statements.

7. Always be aware of "FEES" that come with your credit card.  Depending on the credit card, "fees" are sometime charged to the card holder, the most common being an annual fee that is charged to you for using the card. Another type of fee is a LATE FEE, which is charged to your account when your are LATE in making a payment... which is just another reason to pay your bill 7 days before the due date.
-Your goal here is to get a card in your own name and make the account look active. Doing so consistently will make your credit report look better. Obviously, you want to make sure that you pay on time while you are activating your account.

EDITOR'S NOTE: You might save money while building a credit history with private student loans instead of a credit card.

>CONTINUE TO >PART 3 of our CREDIT SECTION.


NOTE: for student credit cards and credit and debt education, visit student credit cards for additional credit information.

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Schoolwork Pages: 
Education Online : Student Loans 1> 2 >3 >4 : FAFSA : Credit 1> 2 >3 >4 >5 : Loan Consolidation 1> 2 >3 >4  Consolidate Loans

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