Credit Card Mistakes You Should Never Make In College

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Financial stability is something that every college student desires, but attaining it is often hampered by the financial decisions one makes. Many economic concepts are taught in the classroom, but you will not be taught how to spend your money to avoid being broke. You will learn more about efficiently spending your money outside the classroom when you make or learn from your mistakes and other people’s. As students continue using credit cards more often, they encounter various mistakes that leave them in debt and affect their financial independence. Here are credit card mistakes to avoid when in college. 

Failing To Track Spending

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Most stores nowadays accept credit cards, enabling shoppers to make purchases without needing cash. When using credit cards to make purchases, keep tabs on how much you spend. A challenge you will likely find yourself in when you spend without keeping track is credit card debt. Credit card debt will leave you with a significant financial burden that you can easily avoid. Whether you purchase papers at sites like, clothes, take yourself out for entertainment, or any other expense, always track your spending to see whether you are within your limits.

Forgetting To Pay Bills On Time

Companies usually place fines or high interest on late payments to ensure that their customers pay their bills on time. The fines associated with late payments can harm your finances. You can avoid such a predicament by opting for automatic payments. Some companies have applications that allow you to create alerts and even track various payments when they are around the corner. Setting such reminders will keep you on your toes, and you will be able to make more informed decisions before your deadline lapses. 

Opening Too Many Accounts

Students have numerous tempting offers to open up new credit cards. Though there are restrictions against credit card companies predating on unsuspecting students, signing up for a card is easier than ever, and it is easier to find yourself signing up for many cards. It’s important to resist this urge and start slowly to avoid losing track of your spending. You can start with a single credit card. The single card will allow you to learn how to manage your account effectively. Too many cards might fail to attain the desired benefit, as you can easily lose track of your spending. If you have numerous credit cards, ensure you have learned the basics and are comfortable managing them.

Not Refusing Retail Credit Cards

As already noted, you need to avoid having too many credit cards, and one strategy is to say no to retail credit cards. Many stores offer sign-up offers that encourage you to sign up for a card to enjoy certain discounts. Such discounts are enticing and seem like a good way to save money, but you should remember that the benefits from the discounts will be negated by interest rates and fees charged on any balance you carry forward. When considering these store deals, remember that most stores are there to make profits, and some deals are not as generous as they seem. 

Another challenge associated with store cards is their ability to encourage overspending. The added credit people get at checkouts is usually difficult to resist. When shopping, you might find yourself buying more items than you had planned as you try to get discounts by using the store credit card to make purchases.

Spending Beyond Your Means

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There is an impulse for students to spend more than they have. Spending beyond your means can result in several detriments, the first being excess credit card debt. After finishing college, you will start a career, and one challenge you will face is the financial uncertainties associated with a limited income. Adding a credit card debt to an already challenging financial situation can worsen things. Thus, spending beyond your means can jeopardize your life after college.

Overspending can also leave you with late payments, creating an unpleasant credit record when you start your career. A bad credit record gives a negative perception of yourself to credit institutions, and you’ll find it challenging to get a loan in the future. Imagine not being able to get a loan to start a venture or buy your dream car because of mistakes you made with your card. 

Letting A Friend Use Your Card

True friends help each other. You can help a friend decide which paper writer to hire after checking masterpapers review or reviews of other writing services. You can also assist your friend by sharing things, but you shouldn’t share your credit card. Failing to share your card doesn’t mean you don’t trust your roommate. Many things can potentially go wrong when your card is in other people’s hands. For example, your card can get confiscated after an identity check, the person can lose it, and they can also use the opportunity to make multiple purchases. If your friend needs your help, it would be better to help them while keeping yourself safe by lending them money and not giving them your card.

Taking Time Before Notifying Your Issuer Of Theft

Credit card theft is a common challenge people face today. Many issuers have taken the initiative to provide users with a certain degree of protection in the event of theft. However, there are still incidences of identity and card theft, which leaves a victim in significant distress. The thief can wipe out your card or make extravagant purchases, leaving you in significant debt. So, whenever you lose your card, report it immediately.

Closing Remarks

Not all lessons should be learned the hard way, so it’s best to avoid learning credit card mistakes the hard way. When signing up for a credit card, it would be wise to avoid having numerous cards because it can make tracking your spending challenging. Besides, avoid spending excessively to avoid credit debt. What’s more, keep your card safe and avoid sharing it with friends, as they might misuse it.