Good and Bad Things about Credit Cards You need to Know

There are some Good and Bad Things about Credit Cards for Students!!
Save Your Money for Future, Money Making idea for Student
  1. Use credit cards to help you establish a credit history, which will be important to you when you graduate and are on your own in the "real" world. Be sure that the history you establish is a good one, because credit mistakes you make in college will follow you around for at least seven years on your credit report.
  2. Credit cards provide a sense of security from knowing you'll have funds available to you in the event of an emergency, but the temptation to use them as an extension of your income is especially strong in college. If you can't resist using credit for things you can't afford to pay off at the end of the month, put the card away in a safe place to use only for true emergencies.
  3. Credit cards provide a monthly overview of your purchases on one statement (assuming you have only one card). The statement provides a simple way to update your monthly budget. It's much easier than rummaging through a bunch of receipts every month to record your purchases and analyze your spending.
  4. Credit cards can be a great tool, but used improperly, they quickly lead to burdensome debt, financial crisis, and possibly bankruptcy. Avoid the expense of high interest rates and compounding interest expense by learning about responsible credit card use before you start using a credit card. See Nellie Mae's Credit Card Tips at, or the How Stuff Works tutorial on all things credit at for an overview of the ins and outs of credit cards, or read the Real U Guide to Bank Accounts and Credit Cards by personal finance columnist and author Ilyce Glink.
  5. Surprisingly, more students drop out of college due to unmanageable credit card debt than to academic failure. To make sure this doesn't happen to you, use credit responsibly and avoid charging more than you're sure you can afford to pay off at the end of each month.
  6. Leaving college with credit card debt is a drag, because it prevents you from having a better lifestyle after you graduate. Most students have to make sacrifices while in college. If you don't, you'll most likely be making them after you graduate because so much of your income will go toward paying off debt you incurred in college.
  7. When you incur debt, you're actually spending your future earnings. This is financial slavery. Paying for an education is considered "good" debt, but to make your life easier after you graduate, it's important to make wise decisions about incurring debt in college. Limit high interest credit card debt and manage all of your financial affairs so you use only as much student loan money as absolutely necessary.