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Managing your student secured credit card is essential to keeping a good credit score. When graduation comes and you are ready to get a job, your credit score is one of the factors used to determine character and trustworthiness by many employers. Graduates who have poor credit scores are deemed less reliable than a comparable graduate with good or excellent credit.
Additionally, managing your secured credit card debt opens the doors to obtaining unsecured lines of credit. This includes automobile loans, home mortgage loans and access to an unsecured credit card. These simple steps will help you look differently at your secured credit card and mange it carefully.
Step 1: Keep a Tally of Debt
You should track monthly your spending and see where your money is going relative to your secured credit card. In many cases, a student may be given a secured credit card because of no credit score. Many students do not have enough credit history to qualify for an unsecured credit card. A secured card allows you to enjoy the benefits of owning a credit card while building a credit profile.
Step 2: Maintain a Secured Balance Sufficient for Your Spending Habits
You should only maintain as much security on a secured credit card as is necessary to meet your spending needs. During your college life (and in some cases high school) the credit card should be viewed as an emergency source of fund to be used only when necessary.
Establishing good disciplined spending habits early in life will only make obtaining credit easier later. The decisions you make today regarding spending and credit will either be a boon for your future or create many problems for you.
Step 3: Establish and Maintain a Budget
The best way to establish and maintain a healthy habit of spending is by establishing a budget. This can be a simple listing of the necessities needed to live such as books, food, clothing, lab fees and materials, etc. This list can be maintained on a sheet of paper or in your computer.
Practicing this habit allows you to effectively track your spending and make better decisions about your money. It will also help you prioritize your spending and only make those purchases that are necessary to maintain a decent standard of living without going overboard.
Managing your secured credit card as a student is an effective way of demonstrating your responsibility and maturity. Making wise spending choices, maintaining a reasonable line of credit, spending within your means and paying your bills regularly should result in numerous offers for an unsecure credit card with a sufficient limit, as well as access to other lines to help you achieve a foot up in the world.
Managing Your Student Secured Credit Card
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