Students & Credit Cards

101

Choose Your Card Wisely

• Don’t just get a card because somebody gave you a free water bottle.

• Read the fine print and know the card’s APR, features, and obligations.

Don’t wait until the last minute to pay your credit card bill. Being late on a payment directly affects your credit score. This score is kept by the three major credit bureaus, and is calculated by your payment history and other financial data. Your credit score is used by lenders to determine whether they should lend money to a person, and at what interest rate. Paying online is fast and easy these days.

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Stay within your credit limit

It’s important to keep a cushion of available credit for emergencies. What’s more, byin keeping your account balance less than 2/3rds of your available credit—and even better 50 percent—you will show that you have the capacity to pay back your debts.

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Limit your credit cards

You can keep your debt exposure down by avoiding getting too many credit cards, including department store credit cards. It’s also easier to keep track of your debt with fewer cards. Know that excessive credit inquiries over a short time frame may be a sign to creditors that you are having financial problems.

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Pay what you spend each month

If you can’t pay your balance in full every month, try to at least cover all of your spending on your card every month, and avoid increasing your balance. Balance creep is all too easy to do. Have a budget to pay down any unexpected charges.

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Moved?

Let your credit card company know your new address.

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Co-Signer?

The new credit card act that went into effect in 2010 makes it harder for college students with no credit history to get a credit card without a parent acting as cosigner. Bear in mind that your use of the card can affect your cosigner’s credit record.

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Protect yourself

Protect your account numbers, personal identification numbers (PIN's), card security code, and your social security number. Don’t let friends use your card and don't use your card to pay for other people's purchases.

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Keep an eye on it

• Check your transaction history online if you can every few days.

• Investigate any usual activity or charges that you don’t recognize.

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Lost card? Report it right away.

The law protects limits your liability to $50 if you report a missing credit card and a thief runs up charges. Your liability on a debit card is also $50 but only if you report it missing within 48 hours of its unlawful use.

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Prepaid cards are an alternative to credit cards for students

• No credit checks required.

• Use wherever Debit MasterCard is accepted

• No cosigner needed.• No interest payments• You or parents put money

on the card and use it for shopping, dining out, ATM withdrawals.

MiCash PrePaid® MasterCard®

More information available at www.micash.net