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How Can Students Prevent Bad Credit History?

By Derek Brown
Published: Tuesday, September 14th, 2010

Credit cards offered to students serve as their bridge and possible stronghold for future credit card application. Managing their credit cards in a good way may actually open future doors when they decide to have their own new house or car.

But with an improper use of student credit cards, stressful debts and unimaginable financial problems are instead the results. Such problems may greatly affect a student’s recovery from bad credit history, causing an ultimate delay.

How then can students avoid bad credit history? Student credit cards can offer the solution.

Student credit cards are more restrictive and limited compared to the common credit cards. These credit cards have a limited amount that a student can borrow for spending. These cards are issued after an agreement had been established between the creditor and the student to limit the possible amount that can be lent and borrowed.

Of course there are some considerations before deciding whether to get your own student credit card or not. First concern is on the use of credit card—knowing whether the card is for emergency or regular purchases will help you arrive at your real purpose.

Next, you have to determine the reasonable level of your current financial status. Are you the person who can spend more than a hundred dollars and can pay these debts for the next months? Assessing your own account and expected bills would be a great help especially when you need to put a limit to your own credit card use.

Lastly, you have to thoroughly analyze and critically evaluate the conditions and terms behind the use of your credit card. You have to determine the rates that they will charge you and make sure that these rates would be kept on a minimum for a long period of time and not just a temporary offer.

The person should also look for hidden fees or charges in deciding to have a student credit card. It would be wiser if you pay the person in cash once you detected that the amount they charge will be significantly higher when you use your credit card for payment. This would help you pay only what is intended.

Some will charge you with higher interest rates. And if you have any problems with the use and terms of your card, asking the credit card company from which you got the card would be helpful in clearing things out.

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