Strategy for Student Credit Card Users

Credit cards are a reality in today's world. At some point in your life you will need to develop a credit score. There are strategies you can use to use credit properly and to your advantage. As a student in college it is a good time to learn discipline, and build a good credit history.
The first thing we need to talk about is what is a credit score and how is it calculated? A credit score or FICO score is a weighted score based on certain variables in your credit past. Your credit score is calculated by three different companies. They are weighted in the following ways.
35%- Payment history

• Payment history on individual accounts
• Adverse public records like (bankruptcies etc)

30%- Amounts Owed

• Amounts owed on different accounts
• What proportion of credit line are you using out of your total credit line

15%- Length of credit history

• Here the longer you keep a card open and current the better

10%- New Credit

• This includes credit inquiries
• What proportion to your esablished credit is new

10%- Types of Credit Used

• This looks into the diversity of accounts used (credit card, mortgages etc.)

So basically when you have a credit card you need to make a habit of paying for it. It is not beneficial to keep a balance on a student credit card. We as students are charged very high interest rates. Plus if you make a habit of paying it off every month it will help with the largest contributor in your credit score.

So lets say you feel like you are ready to open a credit card lets talk about how to go ahead and get one. Use a credit card comparison site. I reccommend the Discover Card, they have lower interst rates, great customer service, and cashback for things you paay for anyway. I have a discover card and it has been a dream. This website here has a selection of different designs for your discover card.

In review, I want to remind you of some important things with credit. It will follow you so be mature. Only use credit in emergencies or for specific purposes like purchasing gas, and pay it off everymonth. Treat it like the money being used is coming straight from your bank account.