It is not a bad idea to have a credit card in college. Credit cards help with identification, for travel plans, and in case of emergencies when you’re away from home. But, credit cards can also spell B-I-G D-E-B-T if they are not used properly. And, during the college years the temptation to overspend by charging is certainly there because you want to be part of the crowd and your wallet is not always stuffed with cash. But, you need to be careful!
One cardinal rule for using as credit card wisely is: Only use cash (or a debit card) to buy anything—unless it’s truly an emergency or unless you can afford to pay the money you are charging in full at the end of the month!
Another rule is to take care of your card. Photocopy the front and back of your card in case you lose it, and keep the paper copy with you so you have a phone number to be in touch with the issuing bank. Put the card in a safe place in your wallet or purse and in a not-so-visible place so you can not easily grab it for a spur-of-the-moment purchase. Save all your receipts and actually check them against your monthly statements; mistakes are made!
A final rule is don’t allow yourself to be tempted. Keep only one low-interest card. Don’t let your bank raise your spending limit, and always ask yourself if whatever you may be charging to your card is worth the accruing debt. One of the best student credit cards with NO Annual Fee which will save you money with their 5% cashback is the Discover® Student Card-No Annual Fee card.