Credit Cards 101: Tips For College Students
(NewsUSA) - Living on a budget and managing money are challenging lessons for many of us, especially college students learning financial responsibility for the first time. Yet it's a lesson worth learning because for many, a credit card will become a powerful and indispensable financial tool.
Whether to build that all important credit history, purchase goods and services conveniently or provide emergency protection, credit cards benefit students in many ways. After college, a strong credit history will be a valuable asset when they apply for car loans, apartments and even jobs.
But along with the benefits of owning a credit card comes responsibility, which, if mishandled, can cause serious financial problems. While most students can get a credit card, the key is to make sure he or she has the right support to use that card wisely.
To promote the responsible use of credit cards among college students, Citibank, the No. 1 issuer of credit cards in the United States, offers these tips to students from its Credit Education Program:
* Set a budget and keep track of your expenses. Sit down and draw up a monthly plan. List your sources of income, then subtract expenses such as books, meals and personal care. What's left is your own personal "credit line," or the discretionary amount you can afford to spend each month.
* Don't get in over your head. Credit cards don't give you more money - just spending power. It's okay to finance purchases when you need to, but remember that you will have to repay the money you spend. Therefore, use your credit card wisely and sparingly.
* Click, dial and shop safely. For purchases made online or over the phone, a credit card is a must. Choose a card that offers purchase protection and keep all receipts for any returns.
* Shop for the card that suits your needs. Credit card issuers now offer students a variety of products and features, such as discount air travel, cash back and rewards. It's worth the time to find the right card that gives good value and service.
"Getting educated on money management is the key difference for students to successfully use credit cards to their advantage," says Gina Doynow, Citibank's college cards business manager. "We are committed to helping students learn how to manage credit early on by providing them with the help and support they need to stay on a responsible track."
Citibank offers a range of credit card options for student needs. Each card provides special services and perks such as rebates that are redeemable in cash or discounts on goods, services and travel.
To learn more about managing your money, you can download or request the free materials by logging on to http://credit-ed.citibank.com.