If you were to do a survey of 100 people with poor credit, a number of them will probably respond that their credit issues started when they enrolled in college. This is no coincidence. Freshman year of college marks the first time for many people when they are on their own. They no longer are bound by their parents' rules, but at the same time, they may not be able to rely on their parents financially as much either. And college is expensive. There are obligatory costs – like books, food, and transportation – and there are also various voluntary costs that could add up too.
Given this, it can be highly tempting to just apply for a credit card and make a lot of charges, but we all know the problem with this. If you have a large amount of debt and don't have the means to pay the debt off as soon as possible, you may incur a ton of interest, miss payments, or get rejected for rental applications or even jobs. Ask any person who had bad credit in college, and he or she will tell you that they wished they knew more about credit cards earllier. Here are a few things they probably wished they knew:
Use Your Credit Card as a Debit Card: Spend within your means. Just because you have $1,000 on your credit limit doesn't mean you have $1,000 in your wallet. Only spend as much on your credit card as you know you can pay off within the month. Carrying a balance will just cost you more money in the end.
When You Go Out, Leave the Credit Card at Home: For some reason, the resolve to be prudent on a Friday night is much more difficult than on a Tuesday morning. It could be because the week is over. It could just be the copious amounts of alcohol. If you're going out socially, try to stick with cash and leave the credit card at home. Then you won't have the temptation.
Shop Around for the Best Deal and Rate: There are a number of great options out there for college students when it comes to credit cards. Do your research and consult your parents to help you find the best card available.
College is a learning experience in and out of the classroom. If you have poor credit from your days in college, all is not lost. There are credit cards for bad credit that can help you rebuild your credit. You can also dispute charges and start paying down your debt to see your score improve. However, if you're new to credit, the best thing is to not dig yourself in a hole in the first place. Remember these tips to help you stay above water.
Given this, it can be highly tempting to just apply for a credit card and make a lot of charges, but we all know the problem with this. If you have a large amount of debt and don't have the means to pay the debt off as soon as possible, you may incur a ton of interest, miss payments, or get rejected for rental applications or even jobs. Ask any person who had bad credit in college, and he or she will tell you that they wished they knew more about credit cards earllier. Here are a few things they probably wished they knew:
Use Your Credit Card as a Debit Card: Spend within your means. Just because you have $1,000 on your credit limit doesn't mean you have $1,000 in your wallet. Only spend as much on your credit card as you know you can pay off within the month. Carrying a balance will just cost you more money in the end.
When You Go Out, Leave the Credit Card at Home: For some reason, the resolve to be prudent on a Friday night is much more difficult than on a Tuesday morning. It could be because the week is over. It could just be the copious amounts of alcohol. If you're going out socially, try to stick with cash and leave the credit card at home. Then you won't have the temptation.
Shop Around for the Best Deal and Rate: There are a number of great options out there for college students when it comes to credit cards. Do your research and consult your parents to help you find the best card available.
College is a learning experience in and out of the classroom. If you have poor credit from your days in college, all is not lost. There are credit cards for bad credit that can help you rebuild your credit. You can also dispute charges and start paying down your debt to see your score improve. However, if you're new to credit, the best thing is to not dig yourself in a hole in the first place. Remember these tips to help you stay above water.