Now That You Got Your Student Card, What’s Next?
Now that you have your student card, you probably feel like your are sitting on top of the world and that next big adventure is right around the corner. Provided you use your card responsibly, you may not be half wrong, but don’t go charging Spring Break just yet. Let’s first discuss a few next steps to make sure your student card purchases are smart and your debt remains manageable.
Student Card Do's and Don'ts:
To begin, some student card companies try to entice you with an introductory APR of 0% or free merchandise with certain purchases. When you start out, this all seems like a piece of cake, and even “underwhelming” to some extent. This feeling of ease can disappear when you see your first bill or miss the fine print, so it’s important to understand the hidden fees and the realities of credit. As much as we would all like to believe that a credit card is free money, it is anything but. Any purchases you make during that introductory APR of 0% should be paid off before the introductory period ends. If they are not, then they become subject to your new
interest rate. As a student, your interest rate will rest around 20%. This means that every purchase you make with your credit card, costs an additional 20%, which you will be paying back to the student card company as a “lender’s fee.”
With that in mind, it is important not spend more than you can pay back. The current credit crisis in the US economy shows what happens when people are taught that they can live outside their means, and this is your chance to avoid future financial fallout. In a sense, it’s a double-edged sword: you need credit for necessary life purchases and to secure yourself financially, yet if you misuse credit, you run a financial risk. If you follow the below list of student card Do’s and Don’ts, then you can gain the credit score you need for future purchases, while spending wisely and still staying up-to-date on the latest trends and fashions.
Student Card Do’s |
Student Card Don'ts |
| Try to pay your balance in full every month, if you cannot pay in full, ALWAYS pay more than your minimum payment | A credit card bill is not prone to disappearing acts, so make sure you pay it instead of ignoring it. If you miss a payment, late fees will pile up and your interest will jump. |
| If you can’t pay your bill, call the student card company and work out a payment plan with them – They WILL work with you. | Don’t be afraid to ask for help. If you are afraid to ask your parents, then talk to a school counselor and get advice. |
| Have no more than two college student credit cards at a time; You don’t need more than 2 student cards. | Don’t let free offers reel you into applying for more student cards – 1 student card is enough, 2 cards are plenty, 3 is too many. |
| Make sure you have a steady paycheck before applying for a card | Don’t get a second student card to pay off the first one. |
| Keep your receipts and compare them to your monthly statement | Don’t throw away your receipts and then realize that there is a mystery charge that you cannot account for. |
| Pay your student card bills on time | Don't miss a payment if you don't have to. Late fees are costly, and the negative impact to your credit is even worse. |
| Always stay under your limit, and ask for a lower limit if possible | Don’t hit or exceed your limit – you will get fined for exceeding your limit, and if you are close to it, any hidden fee can put you over your limit without expecting it; you dont want to wind up with college student credit card debt. |
Now that you understand the Do’s and Don’ts of your student card, you are ready to start using it. Just remember to spend wisely. Your student card is your first step into the world of credit, and there are people to help ensure that step is easy and stable.
Student Credit Card |
 |
Discover® Student Card |
 |
Discover Student® |
 |
