Seven tips to create a good credit score with your student credit card

Everybody wants to build a good credit score.  This is important for students considering long term goals. The following tips will useful to build a good score on a student credit card.

Some people object issuing credit card to students due to the dangers in their use.  However, students should be exposed to personal finance management at least to a limited extent.  Keep in mind the following tips to make good use of your credit card:

Keep only one card for use. There is no need to take too many cards even though there are attractive offers around. Multiple credit cards lead to unnecessary shopping.  If you have more than one card, close by unused credit cards.  After all, why to pay additional fees? Stay within the limits sanctioned to you.  Pay the amounts due on time.  If you go over the credit card limits or do not pay back the dues, there will be late payment fees and interest on outstanding balances.  They all can make a permanent mark on your credit score.  Be smart enough while using credit card and be responsible in repayments. There is always a temptation to pay the minimum balance mentioned on the credit card statement.  This is just a nominal amount to keep the account going.  The principal amount and interest thereon will go on accumulating and will make the repayment very hard over a period of time.  Try to make full payment of the amount due. If not possible, try to pay as much as you can. Open a savings account to take care of emergencies.  Deposit at least some money regularly. It will earn interest and at the same time will be useful to pay off the overdue balances on credit card. Read by credit card application very carefully before signing and handing it over to the company.  It is usual for these companies to include some fine prints.  You should be mainly looking at the penalties for late payment and the rate of interest you will be charged on overdue payments. Develop the habit of checking and filing all the statements you receive.  Sometimes there may be a mistake by some creditors. Be smart to protect your identity.  Misuse of your personal information can lead to a serious damage your credit score even if you have not done anything wrong.

A lot of effort is required for building and maintaining a good credit score.  Following the above tips will help you to stay responsible as well as organized in your financial matters.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.

I am a student with NO credit. What credit cards will accept me?

i have no credit and I want to build good credit. I am 18, full time job and full time student. I have been applying for student credit cards with discovery and mastercard but they are all denying me. HOW DO YOU GET A CREDIT CARD WITH NO CREDIT?

Answer
Hi Krista,

Have you tried a student credit card? I did a quick google search, and found findcollegecards that has a decent sized list of cards that you can apply for. Try Citi Bank, or a bank like that to see if you get approved.