How to Manage Credit for College Students

Creditors have always visited college campuses in the search for students who want credit cards or loans. College students who haven't learned to properly manage credit may soon find themselves in debt. However, by knowing what to do, students can establish their own credit with the ease of a seasoned vet.

Instructions

Difficulty: Easy

1. Attend classes devoted to money or credit. There are many places where you can get training and not pay for it. Focus on learning how credit is established and what can go wrong if it's taken lightly. Take notes and study them. Start writing down plans on how to use the information you learned for your personal situation.
2. Spend a little time with a parent or legal guardian to create a budget to live by. Make sure to include school expenses as well as personal items. School expenses should include books and supplies. Personal items include entertainment and toiletries. List all income you receive in a separate column. Cross out expenses you don't need.
3. Before signing up for a credit offer, be sure to read the entire terms and conditions with a person who has knowledge and experience with managing credit. Make sure you know up front what the Annual Percentage Rate is. Check to see if the offer has an annual fee.
4. Carry a small notebook or tablet around to jot down what you spent money on. Keep this up for the duration of the time you're enrolled in school. Include the price and what the item will be used for.
5. Open a savings account at a bank close by. Most banks have accounts that are built with college students in mind so be prepared to show your student I.D. However, don't spend money from this account unless you absolutely must.

Tips & Warnings

• Read as much about credit from magazines, periodicals, and books.
• Watch financial television shows to learn more on learning how to manage your money.
• If you already have too many credit cards or loans, don't continue getting more. Sooner or later you'll have to repay it back. Repay the ones you already have.
• Don't settle for just any offer. Use judgement when considering other offers.