Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

College Credit Cards - Smoothing out Your First Credit Wrinkles

By Bomby Dimpu Subscribe to RSS | January 1st 2012 | Views:
loading
 
  



University student credit cards have replaced student loans as the freshman's first experience with student credit. At the actual sophomore level, out of a sample of 100 college students, over 90 are found to hold at least one college charge card. The question is - why do many students end up in a vicious cycle of debt with their college charge cards? Why are they astonished with the huge bills they receive every month? Most importantly - must it necessarily always be by doing this for a college credit card user or can there be a simpler way?

There are plenty of statistical indicators to claim that students run up credit bills regularly yet they don't pay down their card balances nearly enough. Approximately 21% of college charge card users have balances between $3, 000 and $7, 000. The amount of credit cards in an average student's possession keeps increasing - a sign that they could be acquiring new cards to pay off balances upon old ones. But this only leads inevitably for their overall credit balance increasing even faster, adding more debt to some seemingly never-ending downward spiral of debt.

Five Steps to Avoid the College Credit debt Trap

The core reason of this pathetic plight may be the absence of a disciplined and planned system associated with spending. If you, as a student, wish to optimize using your college student credit cards, use the subsequent guidelines to plan your spending:

- Pay your bills promptly. Late fees are the most unnecessary source associated with additional credit expense. Always ensure that at the absolute minimum, you always meet the minimum payment on your own bill. Ideally, you should try to pay a lot more than the minimum amount to reduce overall charges.

- Make use of the 20/10 rule. Be careful that you never, ever borrow a lot more than 20% of your annual net income and never save money than 10% of your monthly income on your monthly obligations. In other words, balance your credit budget to prevent irregularities in monthly payments.

- Plan your credit score expenditures. With college credit cards at your fingertips, it is easy to give in to the actual temptation of impulse purchases. This can lead to increasing credit card balances

over a long period. It is usually better to plan purchases using your college credit card to help you ensure you only make purchases that you know it is simple to pay off.

- Avoid cash advances. The finance charges for these are typically much higher than standard credit purchases and can be quite expensie.

- Avoid approaching your credit limit. There might be extenuating circumstances that will require you to incur unexpected expenses, but if you stay well within your borrowing limit by avoiding unnecessary charges, you can enjoy the satisfaction of knowing that you could comfortably use your card when you really require it.

The Boon or Bane of College Credit Credit cards

If the guidelines outlined above are kept in your mind, you will find that you can live comfortably with university student credit cards. These tips are especially useful for individuals who envision needing an extra job in order to pay your off credit card debt. Ideally, a balanced credit budget and a zero card balance is the easiest method to handle your credit card expenses. So, while college credit cards can be hugely helpful to certain individuals, they can also end up being a huge detriment to those who do not budget and intend to use them accordingly.

Bomby Dimpu - About Author:
The author is the owner of the information Blog College Credit Card Debt . This Blog offers free advice on how to rebuild credit and manage debt . This Blog also features numerous articles and news stories on credit report, credit cards and bankruptcy.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/college-credit-cards-smoothing-out-your-first-credit-wrinkles.htm

Related Finance Articles Subscribe to RSS

Christian credit counseling and credit counseling services
Published by James Blee on December 14th 2011 | Finance
This recession has been very tough for people who have especially taken loans against their credit c...
 
How to choose the balance transfer credit card offer?
Published by Alenpaul on January 19th 2012 | Finance
As many find themselves in debt with certain credit cards, and trying to renew their card ability th...
 
Apply for credit card online and increase your liquidity
Published by John Matthew on December 28th 2011 | Finance
Credit card is one entity that has made millionaires out of the ordinary men, but at the same time t...
 
Getting settlement when it comes to credit card
Published by Rajkumar Kaushal on June 19th 2012 | Finance
Getting settlement when it comes to credit card is not very easy sometimes because of the details an...
 
Prepaid card-The credit solution
Published by Anni on March 2nd 2012 | Finance
A prepaid card is some card that you place your own cash into ahead of era so you can employ that ca...
 
Benefits of using business lines of credit
Published by Kemar Roach on June 12th 2012 | Finance
Small business line of credit is a kind of financing that is offered by a lot of business banks and ...
 
Unsecured loan information : Advantages for the all types of credit scorer
Published by Mark Fulton on April 12th 2012 | Finance
Unsecured loan Information are normally a personal loan and are ideal for individual who need money ...
 
What's the difference between the purchase, balance transfer, and cash withdrawal rates on credit cards?
Published by Jesse Wallace on July 11th 2012 | Finance
Understanding the various rates offered by your credit card could help you get the most from your pu...
 
No credit search loans - Get Funds Without Verification Process 
Published by Alice Johnsonn on January 12th 2012 | Finance
No credit search loans don’t account your credit history and helps you to avail cash support in qu...
 
Payday Loans No Debit card: a Modern approach to help you!
Published by Alisa Alison on June 2nd 2012 | Finance
Payday loans no debit cards are the quickest services facilitating borrower to meet urgencies withou...
 
Regain your financial standing through credit counseling Houston
Published by James on March 31st 2012 | Finance
There are lots of people who fall into a debt for different reasons. Usually after falling into a de...
 
Loans for Bad Credit People: Weak credit is no more a trouble
Published by Ella Trant on June 8th 2012 | Finance
People with bad credits can realize their urgent monetary needs with loans for bad credit people wit...
 
What to consider when applying for a credit card online
Published by Fiona Roy on April 23rd 2012 | Finance
Discover which type of credit card is right for you....
 
Why hire a credit card debt management company?
Published by Yossi A on January 12th 2012 | Finance
As a matter of fact, it not only clears your already existing debt but also offer valuable technique...
 
Where can I get the best rate credit cards - at the bank or online?
Published by Jesse Wallace on June 6th 2012 | Finance

Applying for a credit card online can sometimes offer better rates than in high street banks....
 
No Credit Check Loans- Fast Cash Without No credit Checks
Published by Jason Welsh on March 29th 2012 | Finance
If you are looking for a hassle free and easy process to get immediate cash help, then you need look...
 
Student loan default might cause bad credit record
Published by Peter Paul on December 22nd 2011 | Finance
Student loan default is a very common problem that is seen globally. Student loans in default should...
 
Procuring credit card in Australia had never been so easy
Published by John Matthew on December 27th 2011 | Finance
One of the best things that could have happened to the man in the present times was the easy availab...
 
Free credit score report: why to get one
Published by Brigham Brock on May 29th 2012 | Finance
It is essential to begin creating a credit status as early as possible. You can start to create one ...
 
Primary reasons to get a credit card processor online
Published by Neal on February 9th 2012 | Finance
There are countless advantages of having a merchant account or payment processor beside you. In this...