With more than 15 million credit cards in circulation in Australia alone and an average spend of 21 million dollars per year across the nation; it’s safe to say that banking is big business. Statistics show the average card has just over a $3,300 balance, which can be a significant amount to pay off for a student. Ensure your credit card debt remains in check with the following student credit cards tips!
4 Tips for Keeping Your Student Credit Card in Check
Student Credit Cards Tip #1 Choose Cards Wisely
When choosing a credit care, don’t get caught up in the hype of a rewards card, or getting a free gift voucher. Consider what card is more appropriate for your spending habits and current financial situation. Students should keep their eye out for a ‘student credit card’, one with low interest, low fees and simple terms of contract.
Student Credit Cards Tip #2 Consider Credit Rating
As a student, chances are you have not held a loan or credit card before. If this is your first card it’s important to remember that this represents the start of your credit history. Credit history is simply a measure of trust between you and the bank regarding your ability to manage finances and make repayments on time. How you treat your credit card will be used as a reflection for how you can manage future mortgages and car loans – so use it wisely.
Student Credit Cards Tip #3 Pay It Off In Full
Paying your credit card off in full is easier said than done, and particularly so where the balance is relatively high. If you can manage to pay off the entire statement monthly, you will avoid the cost of interest, only pay for what you have purchased and implement good long term habits for responsible spending and living within your means.
The focus of a student credit card should be to improve money management. For this reason it is best to stick to just one credit card, as opposed to acquiring new accounts. Having multiple credit cards increases the chances that you will miss a repayment date, or mix up payment amounts. It also allows you access to more money, which means a great risk of spending and greater long term repayments. Applying for multiple credit cards in a short period of time also reflects badly on your long term credit rating.
Do you have any tips to manage student credit cards or build credit rating? What are your thoughts on students owning credit cards? Do you think student credit cards are any better than a regular credit card? Share them in a comment below!
Topics: Credit Card, Student Credit Cards
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