Using Credit Cards Wisely

Tips on College Students on Using Credit Cards Wisely

Following are some tips for college students on using credit cards wisely:

Credit Do's

* Do shop around. If you get a solicitation in the mail, on campus, on the Internet or at the local bank, compare rates and fees. The credit card industry is very competitive so interest rates, credit limits, grace periods, annual fees, terms and conditions vary.

* Do read the fine print on the credit application. The application is a contract, so read it thoroughly before signing. Watch for terms such as "introductory rate" and periods that expire.

* Do ask questions. You are the customer and the bank is providing a service. If you don't understand something, ask.

* Do be wary of anyone who claims they can "fix" your credit. The only thing that can fix a credit report is time and a positive payment history.

* Do promptly open and review your bill every month. This helps you pay your bill on time and protects you from identity theft and unauthorized charges.

* Do be careful with your credit card. Keep it secure. Always have your bank's phone number available in case your card is lost or stolen.

* Do view credit as an investment in your future. By using credit wisely, you can build a good credit history.

* Do order a copy of your credit report annually. Your credit report is like an academic report card -- it evaluates your performance as a credit customer. It needs to be accurate so you can apply for other loans such as a car or a condo.

Credit Card Don'ts

* Don't feel pressure to get a credit card if you don't want one. A credit card may not be right for you. Don't be afraid to say no to salespeople. It's okay to walk away.

* Don't pay your bills late. Late payments can hurt your credit rating.

* Don't spend more than you can afford. A credit card is not magic money; it's a loan with an obligation to repay. Realize the difference between needs and wants. Do you really need that CD or pizza? If you charge these items and only pay the minimum, you could be paying for them months from now.

* Don't apply for more credit cards if you already have balances on others.

* Don't ignore the signs of credit trouble. If you pay only the minimum balance, pay late or use cash advances to pay living expenses, you might be in the credit "danger zone."

* Don't give out your credit card number unless you've initiated the transaction. Be alert to identity thieves and scam artists.