Banking Tips for College Students

Posted by Rebekkah On March - 13 - 2012 0 Comment

U.S. Coins and Paper MoneyCollege is a time when students often rack up loans, work part time, and try to save money. However, the desire to live a little and buy fun things can make saving difficult. Students also start thinking about building credit so they can make important purchases such as a house or vehicle after graduation.

The words “credit card” can scare some and excite others. Some take it as free money while others fear that if they get one, they will spend more than they have in the bank. However, they are a good way to build credit and not scary if steps are taken to ensure they are paid off on time every month.

General credit cards are available as well as credit cards to specific retailers. If the idea of spending too much on one is worrisome, ask for a low credit limit. In fact, unless credit is already established, that is what will be given. Start off making small purchases and be sure to pay the purchases off in full every month. That avoids incurring interest as well, as some interest rates are extremely high.

Looking to make a big purchase but don’t have the money up front? Some stores offer interest-free financing plans on specific purchases, especially for customers with their credit card. This can be a way to buy something more expensive and have 6, 12, or sometimes 18 months to pay it off without developing interest. If all that time is not needed, items often can be paid off earlier than that.

Before getting any type of credit card, it can help to go to a local bank or credit union and talk to someone that works there to get more information to help with the decision. Asking questions and asking for advice can make the whole process seem less scary and help avoid potential overspending.

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