Comments on: Why College Students Should Get a Credit Card NOW http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/ Money Management, Small Business, Career Thu, 11 Mar 2010 21:45:55 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-20047 Ryan Wed, 14 Oct 2009 00:21:02 +0000 http://cashmoneylife.com/?p=1793#comment-20047 Rob, great questions. Getting a credit card can help you build your credit so long as you treat it responsibly - otherwise you are only going to hurt your credit score. To answer your questions: <ul> <li>It won't hurt you to only use your card every few months</li> <li>You don't have to pay a bill if you don't have any charges on it; so pay it in full each month and leave it alone until you need it again</li> <li>So long as you got a no fee credit card you shouldn't get charged if you don't carry a balance and you aren't using your card</li> <li>You can cancel your credit card at any time without fees, but you will owe any outstanding balances you charged and haven't paid, even if you close your account. Closing your account may or may not affect your credit score depending on several factors. I recommend these articles for further reading:</li> <li><a href="http://cashmoneylife.com/2008/05/27/fico-credit-report-card-score/" rel="nofollow">How is Your Credit Score Determined?</a></li> <li><a href="http://cashmoneylife.com/2008/05/28/how-can-i-improve-my-fico-credit-score/" rel="nofollow">How to improve your credit score</a></li> <li><a href="http://cashmoneylife.com/2009/07/22/using-credit-cards-to-rebuild-your-credit-score/" rel="nofollow">Using Credit Cards to Improve Your Credit Score</a></li> </ul> Good luck! Rob, great questions. Getting a credit card can help you build your credit so long as you treat it responsibly – otherwise you are only going to hurt your credit score. To answer your questions:

  • It won’t hurt you to only use your card every few months
  • You don’t have to pay a bill if you don’t have any charges on it; so pay it in full each month and leave it alone until you need it again
  • So long as you got a no fee credit card you shouldn’t get charged if you don’t carry a balance and you aren’t using your card
  • You can cancel your credit card at any time without fees, but you will owe any outstanding balances you charged and haven’t paid, even if you close your account. Closing your account may or may not affect your credit score depending on several factors. I recommend these articles for further reading:
  • How is Your Credit Score Determined?
  • How to improve your credit score
  • Using Credit Cards to Improve Your Credit Score

Good luck!

]]> By: robthejammerguy http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-20046 robthejammerguy Tue, 13 Oct 2009 22:35:32 +0000 http://cashmoneylife.com/?p=1793#comment-20046 hi i just applied for a credit card with capital one, and got accepted. i am 19 have no credit history and have got one of these cards based on the fact i want to build my credit score/rating. however i have a few questions. what happens if i dont use it much. i.e. once every 3 months? do i have to have to pay a billl every month even if i had bought nothing with the card? will i get charged even if im not using it? i prefer to pay with debit card becuase then i know what money i have remaining and that once its spent its spent.. i dont want to borrow all the time only when money is a bit low near end of month or approaching my payday (say a week before payday and i buy something and pay it off a week later for example) also if i use for a while and decide that i no longer want one will i get charged? or lose my credit history. i.e. i use it for 2 years and then decide i no longer want one and want to close the account can i do this with no problems or complications or charges even?? hi i just applied for a credit card with capital one, and got accepted. i am 19 have no credit history and have got one of these cards based on the fact i want to build my credit score/rating. however i have a few questions. what happens if i dont use it much. i.e. once every 3 months? do i have to have to pay a billl every month even if i had bought nothing with the card? will i get charged even if im not using it? i prefer to pay with debit card becuase then i know what money i have remaining and that once its spent its spent.. i dont want to borrow all the time only when money is a bit low near end of month or approaching my payday (say a week before payday and i buy something and pay it off a week later for example) also if i use for a while and decide that i no longer want one will i get charged? or lose my credit history. i.e. i use it for 2 years and then decide i no longer want one and want to close the account can i do this with no problems or complications or charges even??

]]> By: DDFD at DivorcedDadFrugalDad http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19520 DDFD at DivorcedDadFrugalDad Tue, 01 Sep 2009 14:11:08 +0000 http://cashmoneylife.com/?p=1793#comment-19520 The key to this post is-- responsibly! Many college students are just spreading their proverbial wings for the first time and trouble can strike . . . The key to this post is– responsibly! Many college students are just spreading their proverbial wings for the first time and trouble can strike . . .

]]> By: Ryan http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19469 Ryan Thu, 27 Aug 2009 17:18:18 +0000 http://cashmoneylife.com/?p=1793#comment-19469 Glad to see you learning more about your finances. The site you reference is good if you are only interested in Wells Fargo products, but it doesn't offer information on financial products not offered by Wells Fargo. It's more like one big advertisement. It's important to reference several different websites, books, and other information sources when learning about financial products. Glad to see you learning more about your finances. The site you reference is good if you are only interested in Wells Fargo products, but it doesn’t offer information on financial products not offered by Wells Fargo. It’s more like one big advertisement. It’s important to reference several different websites, books, and other information sources when learning about financial products.

]]> By: Lin Li67 http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19468 Lin Li67 Thu, 27 Aug 2009 17:02:38 +0000 http://cashmoneylife.com/?p=1793#comment-19468 Hi there, Thanks for your helpful post! I currently don't have a credit card, however I did run into some problems even with my ATM card, and it was HORRIBLE! That said, I've FINALLY gotten to the point where I know I need to take responsibility for my finances and learn how to better plan for a financially healthy life. The last thing I want is to be in my golden years and having to deal with the backlash of my irresponsible finances from when I was younger! A friend referred me to this Wells Fargo Backstage site: backstage.wellsfargo.com/ and my search for a reputable online financial resource ended there. It has lots of info on money management and credit education, which is huge for me. The site is also really pleasant looking and easy to navigate. Would love to spread the word and hopefully help some of you reading this out. I'm still learning about credit and other facets of personal finance, but this site has been a life-saver so far! Thanks LIn Hi there,
Thanks for your helpful post! I currently don’t have a credit card, however I did run into some problems even with my ATM card, and it was HORRIBLE! That said, I’ve FINALLY gotten to the point where I know I need to take responsibility for my finances and learn how to better plan for a financially healthy life. The last thing I want is to be in my golden years and having to deal with the backlash of my irresponsible finances from when I was younger!
A friend referred me to this Wells Fargo Backstage site: backstage.wellsfargo.com/ and my search for a reputable online financial resource ended there. It has lots of info on money management and credit education, which is huge for me. The site is also really pleasant looking and easy to navigate. Would love to spread the word and hopefully help some of you reading this out. I’m still learning about credit and other facets of personal finance, but this site has been a life-saver so far!

Thanks
LIn

]]> By: Ryan http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19465 Ryan Thu, 27 Aug 2009 01:45:35 +0000 http://cashmoneylife.com/?p=1793#comment-19465 Just one of many life long decisions young folks need to make. The ramifications can be good if responsible, bad if not. Hmmm, just like college! Just one of many life long decisions young folks need to make. The ramifications can be good if responsible, bad if not. Hmmm, just like college!

]]> By: Curious Cat Investing Blog http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19463 Curious Cat Investing Blog Thu, 27 Aug 2009 01:37:40 +0000 http://cashmoneylife.com/?p=1793#comment-19463 I think students should get a credit card. Some students will fail to act responsibly and that is a problem. The costs for those errors can go on for a long time. But so can other errors college students make. I think students should get a credit card. Some students will fail to act responsibly and that is a problem. The costs for those errors can go on for a long time. But so can other errors college students make.

]]> By: Ryan http://cashmoneylife.com/2009/08/25/college-students-should-get-credit-card/comment-page-1/#comment-19453 Ryan Wed, 26 Aug 2009 00:50:36 +0000 http://cashmoneylife.com/?p=1793#comment-19453 Actually, I had enough cash to purchase a car but I took the loan because I was moving from Europe to the US and needed to establish a household worth of furniture, bedding, and other household supplies. I had enough cash to cover those items as well, but I chose to purchase the car with a loan so I could maintain a large amount of cash for any unexpected expenses. I paid off the car loan within a year. And yes, I was proud to get a loan at 4% vs 20%. Credit is a tool, and that is how I chose, and choose, to use it. I continue to use rewards credit cards for almost all purchases because it is easier than writing checks or going to the ATM. Tracking expenses and purchases is also very easy through Quicken because you can download and automatically categorize transactions. I pay my bills in full each month. Using credit is a personal decision and a wise choice for some. Others should avoid credit at all costs. Actually, I had enough cash to purchase a car but I took the loan because I was moving from Europe to the US and needed to establish a household worth of furniture, bedding, and other household supplies. I had enough cash to cover those items as well, but I chose to purchase the car with a loan so I could maintain a large amount of cash for any unexpected expenses. I paid off the car loan within a year. And yes, I was proud to get a loan at 4% vs 20%.

Credit is a tool, and that is how I chose, and choose, to use it. I continue to use rewards credit cards for almost all purchases because it is easier than writing checks or going to the ATM. Tracking expenses and purchases is also very easy through Quicken because you can download and automatically categorize transactions. I pay my bills in full each month.

Using credit is a personal decision and a wise choice for some. Others should avoid credit at all costs.

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