Student credit cards are one of the main causes of rising student debt. Due to marketing deals, many colleges provide the names, addresses and email addresses of their students to credit card issuers. It’s hard for college-goers not to be overwhelmed by various credit card offers.
The unwary college student may be applying for a credit card with a credit limit that he or she can’t sustain. So what can students do to avoid these traps?
Be wise - On-campus solicitations are designed to attract you to their offers. Understand that their job is to sell their offer, not to help you with your financial situation. Don’t make a decision to apply until the following day. Once the excitement wears off, you’ll be able to assess things more objectively.
Stick to cash – One way to avoid credit card debt entirely is by sticking to cash for everyday expenses. Using cash strictly will help you limit your spending, since you’ll be forced to buy only what you can afford.
Pay up – If you used your credit card for one reason or another, be sure to pay the balance in full and on time. This will help you avoid interest charges or other penalties that come with delinquent payment. Remember that delinquency not only adds up to your costs, it also damages your credit rating. That can have serious implications in the future.
Be careful of changing due dates – There are times when credit card companies change their due dates. Always read any letter that comes from them. Take note of the changes so you can avoid delinquency.
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