Back to School Credit Card Advice

Often, going back to school means many students will get a credit card. Credit cards are awesome tools to use, but with great tool comes great responsibility. I found 5 tips for students to consider when they use their credit cards at Credit Cards Canada. Check em out:

Credit cards don't represent YOUR money - Wouldn't it be awesome if they did? Rather, credit cards represent money that someone is willing to loan you on a short term basis. Even just changing the way you think about that little piece of plastic can change your spending habits. If you want to see how much money you have, check your bank account.

Rewards are worthless if you have a huge balance - If you read my blog last week then you'll know what I think of credit card rewards points. There are pros and cons to them. Don't let those rewards points lure you into debt. Spending just to get rewards points is not the best idea. If you can't pay off your credit card balance then the interest you're going to get charged is worth way more than those rewards points.

Credit cards will help you in the future - I don't want to scare you away from credit cards. Not at all. In fact, you need a credit card to start building credit. Building a good credit score over time will make it easier to get loans in the future for a home or a car. Pay off your balance before you start to accumulate interest and you're on the right path to building solid credit.

Pay on time - Mastercard isn't your mother. They won't let you take an extra week to pay because they love you and gave birth to you. When it's time to pay, it's time to pay. Every time you're late with a payment it gets recorded on your credit history. Remember how we're trying to build our credit for the future here? If you're like me and bills show up in the mail then get lost somewhere between the mail box and your computer where you pay the bills, set up an online account. Check it often and pay it off as soon as you see it's due. No more relying on the mail man!

Not all cards are created equal - There are many different cards out there and you're sure to find one that fits your financial needs. For myself, I just want a basic card with no fees. Some people might be willing to pay fees for a card with more features. Do your research and make sure you get what's right for you.

Happy credit carding,
Dex