Student credit card downside

A student credit card can be a very useful tool for a responsible and diligent college or university student. However, and unfortunately, there are many cases in which a student credit card and the use of such a credit card has not turned out well for students. In fact, many experts maintain that there actually is a crisis when it comes to student credit cards if students are not educated and informed about proper credit card usage. 

If you are considering getting a student credit card, it is important for you to closely consider how other young people have run into problems with their student credit cards. The fact is that by learning from the mistakes that other people have made in regard to the use of their student credit cards, you will be in a better position to utilize that credit device in a more appropriate and responsible manner. You will be in a better position to ensure that the student credit card becomes a useful tool for you … today and into the future.

Nearly 80% of all undergraduate college students today have at least one credit card. The typical student carries on average a credit card balance somewhere in the neighborhood o $3,000. The average balance amount that these students are carrying is on the rise all of the time.

A good deal of research has been undertaken in regard to when a student can start running into problems with student credit card debt. This research has demonstrated that if a student ends up carrying a credit card balance at the $5,000 level, he or she likely is to end up in financial trouble. In such a situation, a student will end up likely having a problem paying on the credit card account in a timely manner. As a result, the student will end up having to pay late fees and other charges. Moreover, it is likely that the interest rate on the credit card will increase significantly because payments are not being made on time.

In addition to the immediate problems just discussed, the student will also be faced with the fact that his or her credit history and credit reports and score will be seriously damaged because of the problems he or she is experiencing with the student credit card. 

With all of this in mind, if you are intent on getting a student credit card, it is incumbent upon you to deal with that card in a reasonable and responsible manner. For example, in the best of all possible worlds, you should make certain that you pay off your balance each and every month. While this not always be a possibility, you should then strive to make payments as much above the minimum payment as possible.

Of course, you need to make certain that you do not miss payments or make late payments. Missed and late payments can cause you very serious problems, as have been discussed in this article a moment ago.