By Shu Zheng
Questions about whether college students should have credit cards often arise in the recently years. Surveys and studies show that over 85% of undergraduate students have at least one credit card. It is common that around one third of college students have four or more bank credit cards, at least one gas-related card, plus two stores cards. And it is easy to see how the combination of easy credit can quickly add up to a potential for a bigger financial trouble.
There are some common mistakes that college students have made with credit cards:
· Opening a credit card for free stuff – In fact, these so-called free stuff are not free. After opening several cards for a few freebies, your credit score will get affected negatively.
· Taking the card out for night on the town – The only thing worse than a hangover is credit card hangover.
· Opening store credit cards for discounts – If you open a card in every store you shop, it will hurt your credit score. Plus if you have all those cards, you are going to end up spending more money.
· Overspending, then reporting your card stolen – this is breaking the law, better not do it.
So how should you manage your credit cards?
· If you think you really need a card, find one with good rate, and avoid annual fees.
· Keep spending on one card, and avoid opening more cards.
· Spend for emergencies, but not on expenses.
· Pay the bill on time.
· Say no to the cash advances.
For students, the debit card is an excellent solution to prevent ruining of credit score and carry strong personal financial responsibility.