By Brittany Crow | Staff Writer |
Debit or Credit? The question that we all get asked while making a transaction.
As college students, one important factor about growing up is becoming financially independent. But where do we begin?
Many students get weasled into getting a credit card for “emergency reasons” or to pay for something you might not have money for at the moment, so we swipe away.
We all know that building good credit, especially as young adults, is important to do.
Many times your credit score can determine if you’re able to buy your first car, take a loan out for school or something we all plan to do once we hit a certain age… move out of our parents’ house.
If you decide one day to sign up for that Victoria’s Secret credit card, Macy’s, Arco or even your main bank’s credit card, there are few things you need to look into before anticipating on if you’re going to get approved or not.
In order to pay off credit cards,you must first have a job to do so. Think of a credit card as borrowing something but having to pay it back with a little interest added on to it.
Students use their credit card for different purposes. Student Sylvia Yracheta gave insight on her spending sprees saying, “I mainly purchase things like gas, groceries, or things that I know I can pay off quickly or have the money for in my checking account. On a rare occasion I’ll book a plane ticket or use it to spoil myself.”
But make sure you’re responsible enough to pay off what you purchase. Doing so will help avoid the extra late fees and won’t affect your credit score.
Professor Ghulam Sarwar from the Accounting and Finance department expressed a concern, “Be careful with credit cards. A lot of them have high interest rates, and you might be paying off the interest rate for years rather than what was purchased.”
Finding a card with low interest rates, no annual fees and reasonable credit limits would benefit you in the long run if you’re wanting to build your credit.
Student Sandra Keiler expressed how she has three credit cards and two of them are retail credit cards.
“Retail cards come with fewer benefits and lower spending limits. Not only does it come with those great advantages but it’s easier for you to build your credit score this way.”
A great spending tip is to avoid big ticket buys and try sticking to the small purchases.
Student John Moran explains, “My credit card came in handy earlier on in college when I had to pay for books and didn’t have the cash at the time.”
Being savvy about your credit card is probably the most crucial part of wanting to build your credit.
The real key to getting that 800 score is making the minimum payment every month and not falling behind on your payments.
So students be careful and be responsible.