College Financial Hacks- THE CREDIT EDITION 💪
A common experience among many first gen Latinos is having to open their first bank account without their parents. Many students are completely clueless when asked about credit or credit cards. Some will end up horribly in debt, while others will resort to accepting it only to never touch it. Know, what if there was a middle point?
These are 3 things college students should know about credit cards:
1. Choose Wisely and Think About It Twice: When considering a credit card, go for one that has no annual fees, a low-interest rate (APR), and perks that align with your needs. Use your student status to find-specific credit cards that offer rewards for responsible behavior, like on-time payments and good grades. Play it to your favor.
2. Budget and Track Spending: I probably sound like a broken record, but create a budget that outlines your monthly income and expenses. Avoid deviating from it. Suffering from overspending and accumulating debt is quite common, but avoid it at all costs. Use the SUMA app to track your credit card transactions as a way to ensure you’re living within your means.
3. Pay On Time and in Full: Don’t be like that one prim@ who does everything late. Make it a priority to pay your credit card payments on time. No need for late fees that can create a negative impact on your credit score. Aim to pay off the entire statement balance each month to avoid interest. This also helps you build a positive credit history and demonstrates responsible credit card usage.
College is an excellent time to start building up your credit, however, make sure to proceed with caution. While building credit can be quite straightforward, it can also turn into a burden, especially if you make poor decisions such as missing payments or overspending. Take this time to lay out a foundation for a bright future.
A good credit can help you one day apply for your dream casita or your dream car among many other things!
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