Credit Cards Contribute to a Student’s New Start in Life

Even before earning a diploma, you graduate to adulthood when you get that first credit card in your name. The one from the parents?  That's part of their credit and it doesn't count toward your credit history.

Paying your charges to the parent’s card helps their credit rating, not yours. To the financial world, you become a responsible adult when you start paying your own credit card.

Whether you’re a graduate or still a student, your efforts to handle things in the adult arena, like renting an apartment or buying a car, heavily depend on your credit history. If you've gone from your parent’s home to the dorm, you may not have established any credit history.

In credit terms, no history is almost as difficult to deal with as bad credit. You’re an unknown to the financial world and there’s a 50/50 chance you won’t do well with your newfound responsibility. 

Lending money or credit under those odds isn’t exactly favorable to the lender. Banks are funny that way - they want all the terms in their favor.  So what do you do when you need money but you can’t get money because you have to prove you don’t desperately need it?

Granted that sounds wild, but it’s the way the financial world operates. The fastest way to build a credit history is with a credit card. Don’t jump at the first credit offer you get or wait weeks for processing.

Get online and compare several major credit card companies’ terms and conditions. Take time to really compare the details.  You’ll find some sites that set up a comparison chart on credit card terms, making it easy to see the differences at a glance.

By looking carefully over the credit card offers, you can find one with no annual fee and a low APR (annual percentage rate). You may even choose one with a low limit to begin with.

If you aren’t planning any major purchases and are just getting the card to establish credit in your name, then this is a good choice for you. By applying online, you can get instant approval.

In a few days, your credit card arrives by snail mail. Then you shop. To build good credit, you have to use your credit card and then pay off the balance at the end of the month. Charge something that you know you can pay for when the credit card statement arrives.

After a few months of paying off the balance (or at least meeting the minimum monthly payment amounts on time), you’ll develop a positive credit history.  This isn’t just for purchases anymore.

Many major corporations and some professions now look at your credit rating as a factor in whether or not they’ll hire you. Social research shows over and over again that people who are responsible with their credit tend to also be responsible employees.  Having a credit card may not get you the job you want, but it will buy a stylish new suit and an airplane ticket to bring you to corporate headquarters for the interview!