Financial Independence in Your 20s | Studenomics

Posted: 04 Jan 2013 02:00 AM PST

I like to go after the big savings. I try to get those huge wins that go further than saving money on a cup of coffee. I believe in building your credit so that you can save huge money in the future.

I drink a cup of coffee probably every single day. I don’t mind paying a few bucks for it. I enjoy going out with friends. Sure, I could save the money, but I’m not all about restriction. I want you to have a damn amazing life. I just want you to try to save money where it matters.

If you can build your credit up at an early age, you’ll be able to save tons of money in the future when you apply for a home mortgage or a car loan. We’re talking about thousands of dollars here – not just a $3 drink.

Should you use credit cards to build your credit?

Yes. There are two conditions that need to be met first though. Credit for college students isn’t something to joke about. If you’re a college student you have to meet the criteria for applying for a credit card or else you’ll get into massive amounts of debt or you just won’t be issued the credit card.

You must have a job. Do you have any money coming in? If not, how do you plan on getting accepted for a credit card or paying off your balance if you somehow get accepted? Without a job, a student credit card is a horrible idea. With a job, you at least have the income to pay your balance off if you do splurge.
You need restraint. Do you have any self-control? Most of us don’t in college. I’m not sure how I survived my student years. If you know that you can’t restrain yourself and that you’ll use your credit card to buy everyone drinks, then maybe you should hold off for now. I don’t want that credit card to ruin you financially.

Do you meet the criteria to apply for credit for college students?

What’s the best credit card to build your credit?

Citi Forward® Card for College Students - My favorite student card is most definitely the Citi Forward® Card for College Students. This card gives students a 0% intro APR on purchases for 7 months and when that expires the APR becomes 13.99% – 22.99% variable. The card has no annual fee and requires no cosigner … which is rare for student credit cards these days.

I feel that this is a great credit card to get started with. You don’t have to worry about an annual fee and the APR is low for the beginning. You should also only start with a $500 limit so that you don’t screw yourself over if you do get carried away.

Does building your credit always work in college?

From my experience, credit cards for college students are a very polarizing idea. Using credit cards to build your credit can work because it’s the easiest and fastest access to credit at early age. You need to prove that you’re credit worthy. Credit cards allow you to do this.

Of course there’s the dark side though. We all know someone that got a credit card, maxed it out, and then screwed up their credit for the next decade. This doesn’t have to be you. Actually, this shouldn’t be you! I want to see you use your credit card in college to build credit and prove that you’re worthy of being trusted with money.

“Whether it's the best of times or the worst of times, it's the only time we've got.” — Art Buchwald

Have you thought about using credit cards to build your credit? Any thoughts? Are you totally opposed credit for college students?

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