Enjoy Using Your Credit Card in College Without Regrets

by Christiana Unakalamba 

While in school, getting a credit card can be one of the best things to happen to you if used well or one of your nightmares if used incorrectly.

Credit cards become your buddy when you are able to get student discounts for flight, grocery shopping, cashback and mouth watering rewards! Added to these fun perks is the fact that while using your credit card while in college, you have invariably begun to build your credit score for the future! 

However, a wrong use of a credit card can land you in credit card debt and a lot more such as the following:

Risk of running into irreparable debts: Whenever you use borrowed money, you create debt. Each time you borrow without repaying, you sink deeper into debt! The fastest way to run into unending credit card debt is spending without budget. Overspending your earning, spending carelessly beyond your repayment capacity is the sure recipe for accumulating credit card debt.

Getting blown away with minimum repayments: Minimum repayments seem minimum but don’t be deceived, you could spend years paying it off and end up paying more than twice the original amount of the product. the problem here is that minimum repayments only give a false sense of security.

Missing your credit card payments: The damages that can accrue due to late credit cards can range from increased interest rates and fees, reports to credit bureau and ruining your credit score. However, these consequences can depend on how late the payment was made and your past credit history. If you miss a credit card payment, act and pay back immediately. the sooner, the better

Destroying your credit score: As mentioned above, missing your credit card payments is one of the quickest ways to ruin your credit score. When you sign up for a credit card, you are invariably promising to make every payment on time. Failing to keep to your word is a breach of agreement and this impacts on your credit score. Secondly, running your credit cards up to limit ruins your credit score. When you consistently use more than 75% of your credit limit, you are maxing out your credit card and this is a red flag to the credit bureau. Finally, having too many credit cards equally has the potential to negatively impact your credit score if not properly managed.   

Solutions

You can enjoy using your credit card without regrets by resisting the temptation to overspend. It is so easy to spend more without realizing when using a credit card. Notice when you are unable to pay your balance in full each month - this is a red flag, watch it. It is always ideal to pay off you balance consistently each month.

Always have a plan to spend within what you can afford. Spending above your limit comes off as biting more than you can chew! This means using your credit card for only the things you need and can easily pay for without straining your funds. This makes it easy to pay off the credit card on time without running into debt. Consciously track your spending with credit card

Understand credit card terms before use. Right before using a credit card understand the interest rates, how to use the rewards, discounts and understand terms such as ‘cash back’.

Credit cards are fun and convenient payment tools and also help you start building a good credit score from college before you need to buy that house or get that mortgage!