Just about every college student possesses and uses at least one credit card. Most of these students use them carefully and see them as an opportunity to build a good credit rating. There are, however, a significant number of students who find themselves in difficulties and with a debt that has to be repaid once they are in the position to earn money. It is important that those students who have use of a credit card learn to use it wisely and that they learn to manage their finances very early on. The earlier a student learns the responsibilities of credit card ownership, the better. These cards that were once considered only for the privileged wealthy minority have become a "birthright" of all students.
It is relatively easy for any student to get a credit card. The offers for credit are everywhere around the campus: in mail boxes, social functions and even bookstores. Credit companies view students as good customers, because they are loyal. This is because once the student has the card, they are more likely to update their existing card than to choose a new one. It is very easy for a student to obtain a credit card: some may say it is too easy as it is not necessary to have a steady income to get one. Credit card companies see students as "easy" customers as they very often are not able to pay off their debts in full or on time. The credit card companies make their largest profits from the fees and charges they have, therefore, students "in default" are the best customers for them.
The desire to have at least one credit card is strong with every college freshman. It will help them rent a car if they need it; to purchase books or tickets to concerts; access medical assistance etc.
Aside from the financial boost that a credit card offers a student, it is also beneficial for someone who is looking to build a credit history. This is a record of all of your financial dealings throughout the years and can be affected by such things as late payments, the number of accounts you have, the types of accounts you have, whether you have any outstanding debts etc.
If your credit history is good, it is much easier to get a loan for more substantial purchases such as a house or a car. It can also be an asset for certain jobs and can help you get a better deal on insurance premiums. Therefore, it is very important that a student maintains a good credit record in those vital first years.
The hardest thing for a student is to differentiate between all of the credit card offers. It is advisable for a student to talk to other students regarding cards they may have and to compare the credit cards online.
The student must also carefully analyze the terms of use before settling on a card. The best option is often one that has no annual fee and the ability to set a limit on the credit. For students who are unfamiliar with the workings of finance, it is a good idea to take a course on personal finance as this will help with all areas of financial management skills throughout their life.
A wise student does not overspend on their chase credit card but rather takes heed of the amount they have spent and monitors his points earned through flexible rewards program. This same student will endeavor to pay the amount in full each month, or if this is not possible, to pay as much as they can, at least the minimum amount.
If there are any problems, it is best if the student deals with them at an early stage rather than waiting until it is too late. Seeking advice from a financial counselor is a great idea.
Students should also be mindful of the problem of identity theft and be circumspect as to who they give out details. Certainly they should never give Chase credit card or social security numbers over the phone, because there are predators out there waiting for an opportunity.
A credit card can be a great asset for a student, provided it is used correctly, as it can form the basis of a developing credit history.
