Inside Student Credit
If you've spent half a minute in your college's student union, then I'm sure you've been invited to sign up for a student credit card. Banks want your business badly. They get you now and make a customer for life out of you. Is that a bad thing? Yes and no. Establishing credit history is one of the most beneficial things you can do early in life.
However, you have to be aware of the responsibilities you assume by using a credit card. If you get too far into the woods (i.e. in debt over your head) and can't make your payments, you are in trouble. Big trouble!
I know that won't happen to any of you though, right? I hope not.
So, how can you build a credit history and not get over your head? Well, it's simple math really. Don't charge more than you can afford to pay off monthly. That is, if you charge $50, be prepared to pay $50 when you get your statement.
I know it's tempting to use that new-found credit to buy the things you may need or want, but, unfortunately, there is no such thing as a free lunch. At first the payments will seem manageable, but as you charge your way further into debt, your payments will increase and so will the strain on your budget.
