I didn't get a credit card until after I finished my bachelor's degree. My parents helped me out with undergraduate school and I didn't feel that signing up for a credit card was necessary. After I moved across the country to attend grad school, the idea of a credit card became much more appealing. Although I'm still not perfect at managing my debt, I have learned a few tips about smart credit card management.
1. Decide what type of credit card works for you.
Do you want a rewards card? A low-interest card? A card that donates the service fees it charges toward charity? Many resources on the Web have explanations of the different types of cards so you can determine which one is right for you.
2. Don't get stuck with the same old card if your needs change down the road.
If you find that you grow out of a card you signed up for a year or two ago, you can always transfer your balance to another card that suits your needs better. Just make sure you know how balance transfers work.
3. Don't bite off more than you can chew.
Since I have been establishing credit for a couple years now, I'm sure I could be approved for more than one card. I choose to stick with one card because it is the only credit card I feel I can handle at the moment. However, it is important to be aware that if you already have a number of cards, it can sometimes hurt your credit to close too many accounts at once.
4. Don't let your debt overwhelm you.
It is beyond crucial that you pay your credit card bill on time every month. It is best if you can pay it off in full, but sometimes that is just not possible. Also, before even whipping out that charge card, make sure that purchase is more than just an impulsive one and that it is something you have the funds to pay off in the near future.
5. Keep track of your credit score.
Everyone is eligible to receive a free credit report from one of the three major bureaus (Equifax, Experian and TransUnion) once a year. Check over your report to make sure it is free of errors. Report any mistakes immediately. Although it isn't free, it is advisable that you purchase a Fico report once a year as well since your Fico score is the simplest way to judge how good your credit is.
If you follow these tips, you're well on your way to being a responsible consumer. Even though you may finish grad school with a great deal of debt, at least you won't have major credit card debt to add to that student loan burden!
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