Credit Card Advice For Young Adults and Students

Posted by CardOffers.com Staff | September 17th, 2009 | Advice for Students, Help & Tips

For young people, few events are as heady as receiving your first credit card. Unfortunately, students and other young adults often put very little time into evaluating the offers that are thrown at them, often at inopportune times, such as when registering for classes or when they graduate and win their first job. Because having credit carries a great deal of responsibility, it is very important that you approach obtaining and using that first card seriously.

There is a good chance that you will find quite a few credit card deals coming your way. Many of them will seem like wonderful offers on the surface. They may offer such perks as six months of a great introductory rate of interest, perhaps even six months interest free in some cases. Before you scan the agreement and fill out the credit card application, take the time to read the terms and conditions that come with the card. What you find may surprise you.

Those excellent incentives to sign up for the card can blind you to the long-term commitment you are making. For example, if the introductory interest rate is really low, that is great. But what is the rate that your card will automatically go up to in six months? In terms of interest rates, that is where you want to look closely. When finding the best credit cards, it is imperative that you always verify the regular interest rate that will kick in when the introductory period is over.

You also want to understand how each credit card applies interest to your purchases. In some cases, interest is applied after a ten-day grace period. Other cards apply the interest immediately. This small but important factor can mean that you pay more to the credit card provider over the course of a year.

Knowing how your payments are posted is also important. Some credit card providers apply your payment as of the date it is received. Others do not credit your account until what is known as “a posting date” arrives. That posting date may be three or four business days after they actually have your payment in hand. This means that your payment may be received by the due date, but will still be late if it takes three or four days to post it to your account.

Don’t forget to also find out what happens if you are a day late with your payment. Some credit card companies are more lenient than others, and will give you a day or so before counting the payment as late. Others flag your payment as late immediately, and use that as grounds for increasing your rate of interest significantly. That wonderful low interest rate can disappear overnight if you are even 24 hours late with your payment, leaving you with a rate that is easily twice what you were paying before.

Choosing the right card is the first step to managing your credit properly. Once you have the card in hand, it is up to you to manage the balance responsibly. Pay off the balance each month, or at least as much as you can. Never pay only the minimum amount. Even a few dollars more will reflect well on your credit rating, and start you on the road to building a solid credit report. Failure to do so can adversely impact your ability to buy a car or obtain a mortgage a few years down the road. By checking credit card ratings, reading credit card reviews and responding to the right credit card offer, and then making your payments and managing your balance responsibly, you set yourself on a course that will lead you to financial security that might be impossible otherwise.

Tags: students, teenagers, young adults
Filed under: Advice for Students, Help & Tips |

2 Responses to “Credit Card Advice For Young Adults and Students”

1. nec rfid Says:
   May 2nd, 2011 at 1:34 am

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2. infrastructure maintenance Says:
   May 2nd, 2011 at 1:35 am

   Pretty insightful publish. Never thought that it was this simple after all. I had spent a very good deal of my time looking for someone to explain this subject clearly and you’re the only one that ever did that. Kudos to you! Keep it up

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