So you have just begun college, or maybe you are beginning in the next couple of months and you have a massive stack of credit card applications piling up by the day, along with the frightening thought of living on your own for the first time. It’s a scary place, and also very exciting. The temptation is pretty overwhelming to become dependant on these virtual bank accounts that seem to scream “free money.” The reality is, however, that this is money that is only a loan, and a loan that carries interest. This is not to say that you should not get a credit card at all, but be responsible when choosing what kind of card you get, and how you plan to use that card.
It is easy to let credit cards get the better of you, especially when you have the particular set of circumstances that only college sets up for you. You are, most likely as a traditional college student, not only living on your own for the first time, but also have a lot more unstructured time than you are used to. There are a vast variety of social situations that are open to you now that never have been before. Unfortunately, most of these involve money, and if you do not have a job to support your lifestyle, you can get behind very quickly.
So, why should you get a credit card? Is it better to just avoid the temptation all together? Not necessarily. The next step after college is getting a real job and starting your own life as an adult. In today’s current economy it really is necessary to establish good credit for a lot of these things. You might say to yourself, “I am not planning on buying a house anytime soon…” Purchasing your own home, however, is not the only situation in which you need to take your credit rating into consideration. In a lot of cases, a credit check is run when you need to rent an apartment. Tenants with good credit are more likely to get a nice apartment than those without. It is a part of proving that you are not a financial risk. Even things as simple as getting a cell phone, which at this point seems a necessity to any lifestyle requires a credit check or a hefty security deposit.
Do not panic. You can have a credit card and have good credit. If you are a college student, try and balance your socializing with an on campus or part time job near school. Make a little bit of extra money, and you’ll find that you have just a little bit less time to throw your money around. This way you can live within your means, meager as they may be. It is a good idea to use your credit card for small purchases and pay it on time, and if at all possible, in full. This way you avoid late charges and extra interest, and
build a great credit history.
You can leave college with a degree and a bright credit future.
