The Biggest Mistake College Students Make!

Opening credit cards is single handedly the biggest mistake college students make. I know this first hand. Credit card offers are thrown at college students. At the beginning of the school year, Credit card companies offered free Papa John's in exchange for opening cards. Hmmm, I wonder why? Perhaps because they know college students are just starting to manage their money. Early debt can escalate into something ten times worse if college students are not careful. Credit cards are good for building credit. However they are also good for destroying it.

I recommend that college students only get one credit card. They should only use it for big items and emergencies. Students should not charge things to them if they don't have enough money to pay the majority of the balance. Once students develop their credit, they can ask from a lower interest rate. This will prevent some debt as well. Students should also budget and stop frivolous spending.

Frivolous spending is where the credit card debt begins. People buy things that they would not ordinarily buy because they have a little plastic card in their wallet. This is how credit card companies make their money. They are not banking on responsible people who only charge what they can afford.

Credit cards are beneficial when used correctly. Just make sure that only necessary purchases are charged, most notably textbooks. I am against charging items like food and gas because they easily add up because students don't realize how much money they are actually spending. At first five dollars here and ten dollars there is not that much. The expenses start to snowball though.

If a college student is not sure if they can handle having a credit card, then they should not get one. Building credit is good, however that can be postponed. People should have good money management skills before they open up a credit card. If someone does not save money, or budget, then they are not going to be successful with their credit cards. They are not going to build credit with them. They are only going to accumulate debt.

Hopefully you will take this advice I have given, and use it to your advantage. I am no money expert, and I am still learning, however I feel strongly about credit cards. Credit card companies target college students for one reason; to make money. All college students should know this before opening a credit card. It is in their best interest.