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Date Posted: 05:59:29 12/30/10 Thu
Author: Drew Cassells
Author Host/IP: NoHost / 69.168.143.54
Subject: Student Credit Card - Some Information

When a student moves away from home, he quickly discovers that he is his own boss. His own home. His own schedule. His own responsibilities.

There is more than just laundry. The student must also get on top of his finances. As a student, you need to learn about responsible financial habits and how they affect your credit score. Your money won't take care of itself.. How easy it will be to borrow money is what's at stake - and that can make the difference between an easy path and frustration down the road.

One of the easiest ways you can get on the a smart financial path is to apply for your first credit card.

Yes, a Student Credit Card

Typically, students are "pre-credit" - that is to say that they have not yet established a credit score. This can make it quite difficult to get a credit card of any kind - even harder to land one with an attractive rewards program and interest. (If you are under 21 and without a steady job in the United States, you will need a mature co-signer. Vive Le Canada!) Fortunately, these difficulties are not insurmountable. There is still a way to find a reasonable deal on a Canadian student credit card. There are some credit cards that give university students access to valuable rewards programs and low overall fees.

When you begin researching your choices for student credit card, you must be prepared to pay a higher interest rate than perhaps you would have liked. Luckily, many student-focused credit cards come with decent rewards and without annual fees. When offered the option of a rewards program, make sure that you consider flexible rewards cards with a variety of options that you are likely to use. Points can usually be redeemed for entertainment and sometimes even for cash.

Consider the introductory interest rate, and how long it will last. You should also be mindful of choosing a student credit card based on the special gift alone. While the gift is a nice bonus, be sure to benefit from the card programs themselves before you fill in the application for whatever student card you select.

Wise Use of Your New Card

After approval of your new student credit card, it goes without saying that you should be careful of how you use it. There are some obvious smart moves that you should follow if you wish to avoid the debt trap that so many students find themselves in. This is a truism. A credit card is not a licence to print money. Buy only those items you already have money for. The idea of establishing a credit score, is to pay off your credit card each month. This will help you avoid interest charges - and save you money, so you'll actually be able to afford to buy more in the long run. Here are a few things you can do to keep out of the debt trap with your student credit card:

• Use your credit card to earn rewards, but don’t spend just to get the rewards.
• Save up ahead of time for major purchases, and then buy them only when you have saved enough to pay for it.
• Pay off your outstanding balance every month to avoid paying unnecessary interest.
• Make only those purchases that you already have money for.

A student credit card is a wonderful financial tool to help you prepare for the future. However, if you use it imprudently, you will most likely find yourself drowning in an ocean of debt. Don’t let the freshly-acquired purchasing power of your new student credit card go to your head. Be careful how you spend your money; behave responsibly. Finally qualifying for a student rewards credit card should not be a reason to ignore good financial sense. After all, money is your energy and what you buy and what you owe is really just a reflection of the energy you've put in - and the work people will demand from you in the future.

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