Student Credit Card and Credit Education Blog

Graduating from college and getting your first job comes with a sense of financial independence. However, financial independence comes with financial responsibility. As a college graduate living on your own you will probably have  rent payments, credit card payments and student loan payments among other financial obligations. So how do you balance building your savings with paying down your debt?

Without a doubt you should be making at least your minimum loan payments every month, but if you have extra money in your budget should you use it to further eliminate your debt? That depends. It is responsible for a financially independent person to have about six months of expenses saved up. This way if you loose your job or come into extreme financial hardship you have something to fall back on until you can get on your feet. My suggestion would be to put the extra money in your budget into a savings account until you have this six month safety net. Once you have enough savings build up you can use the extra money to pay down your student loans.

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When I write about student credit I get more comments that simply say “credit cards are evil!” I can only laugh when I see this because it is so far from the truths. Today’s students have probably seen a lot of credit care misuse by their parents, family members and friends. They have seen people who have buried themselves in debt and ruined their ability to obtain a mortgate, car loan, or even a student loan.

Credit cards are not evil,  but the way some people use credit cards is evil. There is a right way and a wrong way to use a credit card. The right way can help you build a healthy credit history and credit score. The wrong way can put you in deep financial debt.

Some people use credit cards to make normal purchases every month. They put their groceries, gas and phone bill on their credit card, but always have money in the bank to back up these purchases. This is the right way.  Some people use credit cards to spend money they do not have. This is the wrong way. You can be a credit card user and never get into financial trouble. It just takes a sense of personal responsibility and self-discipline.

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When you graduate from college you will be faced with the need for something that they do not give you with your diploma; a good credit score. A good credit score is required in a variety of different situations.  You need a good credit score to buy a house or rent an apartment, buy or lease a car, and maybe even to get a job.

Luckily, there are things you can do now to boost your credit score so that you have a credit base established when you graduate. To some of you it may sound silly, but the best thing you can do to establish credit is apply for a credit card.  Applying for a student credit card with a low credit limit can help you build a credit history while learning how to be financially responsible.

Too many people consider credit cards to be synonymous with debt. However, this is not the case. It is totally possible to have a credit card and carry a balance of zero from month to month. First, you should apply for a credit card with a low credit limit. Then, once you have the card, you should put a few purchases on in and pay it off at the end of every month.

If you do this you will be able to build credit slowly without digging yourself into debt. This will make things a whole lot easier when you want to make a big life change after graduation. How do you know you are picking the right credit card? We have put together a list of some of the best credit cards for students. Check this list out to compare credit card interest rates, credit limits, and other benefits!

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