Ready To Build Your Credit History

Category: Finance, Credit.

Ready to build your credit history? But before you sign that application form, here are five things you need to know: They come to you.

Probably your first foray into this kind of adventure is through your very own student credit card. If you still do not have a student credit card, do not worry. Many of them even visit school campuses and actively offer their credit card services to students right inside the campus grounds. Credit card companies will come to you and if you' re currently enrolled, they will find you. They will even throw in a few freebies like coffee mugs, stickers, t- shirts, pens and the like if you sign up. Or you can take advantage of their offer by applying online.

Even if you do not find one in your own school, you could simply go online, shop for the best interest rates and then give your bank of choice a call. Your need for a student credit card depends on whether you can afford it. However, it is still a question of whether you have enough funds to pay your balances monthly whether in full or in minimum payments. Sure, a student credit card offers the convenience that cash cannot it is safe, you get access to money 24/ 7 and unlike cash, a lost credit card can be replaced. Student credit cards are notorious for giving their carriers a sense of independence that can go haywire if they do not watch out. You will also need to watch out for other fees and charges such as carrying or finance charges, annual fees and cash advance fees. Small purchases can pile up on a monthly basis and pretty soon, even the minimum monthly payment is difficult to reach.

If you add these to your regular transactions, you could end up with a pretty steep bill. If you got your student credit card at a low interest fixed rate, lucky you. Fixed rates do not last. But your nice interest rate may not always remain that way. Just keep it mind that it may or may not happen. Credit card companies can change your interest rates at any time, provided they inform you at least 15 days before and there's little you can do about it. Be sure to read your agreement when you sign up so you will know what to expect in the future.

Surprised to find a bill for a pair of expensive flip- flops you never bought? You ca not always trust your bill. You' re not the only one. If there are dubious or false entries, call your credit card company to dispute it. Many consumers find items on their credit card bills that they' ve never actually paid for, so it's a good idea to always, always check your billing statement when you receive it. If there are fees or charges you do not understand, it woould not hurt to ask questions. You have every right to question anything on your credit card bill that you find suspicious.

After all, you are the client and the credit card company is offering you a service. You can ruin your credit history if you are not careful. It can haunt you for a really long time if you do not handle it well. Bad credit is worse than a disgruntled ghost. The few thousand dollars you owe now when you are still a student may not seem like a lot, but it can quickly balloon into a debt you may have a problem paying back in the future. If you do not have a student credit card now, you might want to ask yourself if you really need it.

And when it reaches that point, you could hurt your chances for other loans and mortgages you might be interested in when you' re finally out of college. And if you do, ask yourself if you can afford it. A well managed student credit card is your first ticket to building a credit history that you will be proud of down the line. If you can, have the self- discipline to use it well.