Credit Cards
Credit cards should be used sparingly, if at all while in college.
With the high interest rates credit cards impose, they should not be
used for long time borrowing purposes. Because they can be used very
easily and sometimes without hesitation, it is very wise to keep them
limited to emergencies only. It is also wise not to exceed a credit
limit over $500 while in school; otherwise it may get difficult to keep
up with monthly payments, considering late fees and high interest rates.
Below are some tips for avoiding credit card debt.
- If possible, avoid having a credit card altogether.
- If you must have a credit card, limit yourself to one.
- Have certain limitations when using your credit card, emergencies should be considered the only exception.
- Keep track of monthly expenditures to eliminate unnecessary purchases.
- Always make at least the minimum payment due and be sure to pay your
bill on time to avoid late fee charges and increased interest rates.
- Do not take any offers from solicitors either calling or mailing you
stating how you are pre-approved for their credit card. Two ways to
avoid being solicited is through the Federal Trade Commission for mail offers and the Wisconsin No Call List for telephone calls.
- If you see yourself getting in trouble with payments make sure to GET HELP.
Do not just think the problem will go away. Either seek help from your
parents or meet with a financial aid counselor to discuss your
situation.
- A good link for free counseling and advice is HERE. Click the Consumer Credit Counseling Services (CCCS) tab for more information.