Use Other People’s Money for Free
Protection for Purchases
Protection for Losses
Travel Advantages
Car Rental Savings
General Tips

Remember, it’s not free!

When you do get a card, repeat this phrase, “This is simply a way to access a loan. It is not free money.” You can pay it back sooner (when you get the bill) or later (over time). If you pay over time, you’ll be charged interest. That interest adds to the cost of the loan and can really add up. If you just make the minimum payment, for example, you’ll probably find that most of your payment goes to the lender in the form of interest, not to pay off what you charged. Don’t believe it? Look at your statement and see.

Always, always try to pay your credit card bills on time.

Sounds obvious, but when cash is tight (which it usually is when you’re in school), you may be tempted to let the bills slide for a little while then make a large payment to “make up for it”— maybe when that student loan check comes through. It’s not a good idea. Not only will many lenders charge late fees if those payments aren’t there on time, but any late payments will be reported to the credit bureaus and stay on your credit report for seven years, even if you later pay the bill in full. If you can’t afford to make your minimum payments, a nonprofit agency like Consumer-Debt-Counseling.com may be able to help. The worst thing you can do is wait, hoping the problem gets better while it only continues to get worse.

Check your credit report before you graduate.

Your credit report is going to be just as important to your financial future as that diploma will be to job-hunting. Lenders, insurance companies and even employers can review it! Get a copy of yours before you graduate to make sure everything is correct and up-to-date. If you find mistakes, fill out the form enclosed with your report to notify the credit bureau so it can investigate. You can get your report from any of the following three major credit bureaus. It generally costs about $8.

Equifax:
1-800-685-1111
Experian:
1-800-311-4769
TransUnion:
1-800-888-4213

If you prefer, you can get a consolidated credit report through Consumer-Debt-Counseling.com, which shows everything reported about you to all three major credit bureaus in one easy-to-read credit report. Single-bureau reports are also available.