Top Credit Card Tips for Students

In this short video provides some good common sense about credit cards for students, and how to avoid getting into debt.

Video Transcription

If ever there was a time when you wish money would grow on trees, it would be probably be in school and thus, a credit card looks like a very exciting option. I am Derrick Allen with watchmojo.com and today, we are going to give you some tips and guidelines regarding that first credit card. First of all, do you actually need a credit card? If you do not have any real income, whether it be from your parents or from a steady job, it is probably a bad idea to get a credit card in the first place. You have to be extremely cautious and aware about the money you are putting on it, so if you do not have any money to pay off the bills, then you probably should not spend it to begin with. Some cards might try to entice you with free rewards or gifts, these are the ones that usually have higher interest rates, so beware! Phone the bank if you have any questions. The customer representatives will be much more helpful than the people in the mall trying to sell you the card. You have to be able to manage your spending because credit card spending can easily get out of hand. Keep on top of all your payments and make sure that you keep all your bills in order. If you are paying everything off, it will become more evident if and when your spending is getting out of hand. A good habit to do then too is to pay something if not all on every month. Always remember, it is not free money and the bank is a business trying to make money on you.