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6 Tips for Using Your Student Credit Card Responsibly

A student credit card is great for emergencies or expenses that arenق€™t covered by financial aid or student loans. What some students do is fund dorm parties, buy clothes and eat out every day. This is not responsible spending. Most student credit cards are loaded with funds from parents.آ  If they see irresponsible expenditures, they are likely to cut you off and make you get a job to pay them back or load your own card.

Pay Balances in Full

If you have a student credit card that is not pre-loaded or requires loading from an outside source, always pay the balance in full when the bill comes. If you are only making minimum payments, it isnق€™t helping the principal on the purchase as a majority of the payment goes to pay down the interest.

Make On-Time Payments

Make your payments on time or early. It helps your overall credit rating to make on-time payments. Credit card issuers report to credit bureaus every month. If you are late or completely missed a payment, it will be reflected as such on the credit report. Making a few on-time payments in a row will correct this but itق€™s best to avoid paying late. Paying late also comes with late fees. This just puts you more in debt.

Purchase Books

A single book for a class can cost hundreds of dollars. College students that donق€™t have jobs are not going to be able to afford the cost of books on their own. Without help from parents, student loans and financial aid, there has to be another way to obtain them.

Consider shopping at a used textbook store. Most college towns have at least one used textbook source. Purchase only the books you need for that semester and pay the balance when the bill comes. Many students will purchase books for the entire year and end up changing majors or class schedules, making some purchases a waste of money.

Pay Class Fees

When attending college, some courses come with additional fees for experiments or special instruments needed to complete the coursework. These items come from the school directly, in most cases, so that the costs can be regulated better for students. Sometimes parents donق€™t have cash on hand to send to you to help with these fees. In most cases it is only a couple hundred dollars. Use your student credit card to pay for these fees. It is a responsible use of the credit card that goes toward your education rather than a wild dorm party.

Purchase School Related Items Only

School related items include supplies for classes and items for your dorm room. This does not mean that you should purchase a fancy memory foam mattress or big television. The idea of being in college is to study, not to have glamorous things that take your attention away from your studies. If someone other than yourself funds the card and you do not pay the bill yourself, this could leave you with some debt. Parents are more likely to make you financially responsible for frivolous purchases.

Items you should purchase with a student credit card:

• A good pair of shoes
• A bicycle
• Backpack
• Laptop computer or tablet
• Extra charger for the laptop or tablet
• Bicycle chain
• Desk lamp
• Shower shoes
• Toiletries
• Towels
• Other personal care items
• School fees
• Books
• Tuition
• Study group refreshments

All of the items in the list above are acceptable school-related purchases. Study group refreshments refer to a protein rich snack and non-alcoholic drink. Parents will be more likely to help pay these balances down as these items are used for your education.

No Personal Spending

Personal spending refers to buying pizzas, cases of beer, wings on wing night, movie tickets, concert tickets and unnecessary amount of clothes. Personal spending shows that you donق€™t have any self-control or real sense of responsibility when it comes to finances. If you truly do need a jacket or a decent shirt for a school-related event, then this can be justified as a needed expense. Things that you just want to have can wait especially the latest Smartphone model release or newest gaming console or video game.

The idea behind a student credit card is to teach you some financial responsibility. You have to budget in the monthly payment on the credit card with your other expenses. If you canق€™t afford to make the payments on the purchase, donق€™t make the purchase. The more responsible you are while youق€™re still learning about adulthood; the better off youق€™ll be after college.