Credit Card Tips for Students
Credit cards are becoming increasingly popular among the college students in Canada
. If you are in college, it is best to read the tips below and make your credit card work for you
To have one or not to have one, that’s the question…
Credit card companies in Canada
never miss a chance to attack college students with lucrative offers for hot credit card deals
. However, most of these deals will make the smile freeze on your face and turn into a sour frown once you’ve finished reading all of the underlying terms and conditions that go with it. So, the answer to the question above is rather simple – you should apply for a credit card only if you think that you really need one. Also, you have to shop around for a while so as to pick the credit card that will best meet your individual financial needs. Once you get a credit card and start using it in a wise and responsible manner, you will build your first good credit, which will help you rent a nice apartment or get a car loan later in life. On the other hand, if you open your first credit record with bad credit, you will find it very difficult to get other loans when such a necessity arises and the stain will stay on your record over the next five or seven years.
Credit card companies’ most common traps
When shopping around for a credit card, do not let credit card companies lull your sober sense with catch phrases like “You gotta have it!”, “This card is amazing!” or “This is the credit card that every student
must have!” In addition, credit card issuers will try to push their products on you by promising to give you free stuff such as t-shirts and beer mugs, if you sign up for one of their cards. However, if you consider the interest rate on these cards, you will easily see that you will be paying for at least a hundred beer mugs every year.
Keep in mind that most credit cards for college students
have substantial annual service fees and late payment fees. Additional charges may also apply if you max out your credit card.
Can you afford to have a credit card?
You must answer this question before applying for one of the numerous credit cards available to college students in Canada
. If you pay a substantial annual fee and a high interest on your credit card balance
, then it is just not worth having one. For a start, you can apply for a credit card with no annual fee
with some of Canada’s five big banks, as they usually offer preferential conditions for young card holders.
Finally, remember that you must never use your credit card to pay tuition fees or buy expensive stuff that you do not need. You should use as much credit as you can afford to pay off at the end of the month.