Credit Cards

The ups and downs of credit card use Credit cards give you the opportunity to buy however much you'd like within a certain time period. Also, within your credit limit. That is a huge responsibility. A plastic card that allows you to purchase thousands of dollars worth of goods. Wow. It is easy to get carried away, especially if you do not have the gift of forethought. Credit cards for college students are often troublesome because these youngsters have a lot of expenses, and perhaps a little less discipline than their adult counterparts. While you can spend a lot in one billing cycle, the payback can hurt. Technically, as long as you can cover the minimum balance each month, your credit rating will be fine. However, many people end up in debt if they continue to make large purchases and are never able to pay them off in full. This is where interest rates come in. Credit cards may charge a fixed rate, which is one percentage that doesn't change (unless you make late payments in which case it may increase). They may also charge a variable rate, which changes with the fluctuations of the domestic and world economy. This is viewed as a higher risk because you might end up paying a lot more at any given time. These interest rates only matter to you if you don't pay your balance in full. When you only pay the minimum, which is usually 2% or 3% of the balance, then the rest of the money you owe is subject to interest. Credit cards may in fact cost you a lot more then you intended. This is not meant to scare you, only to help you on your way to a solid financial future. Credit cards are a big responsibility, but not one you can't handle. They are very simple, if you follow the rules. Pay off your credit card on time, and try to only make large purchases when absolutely necessary so you don't get stuck with accumulating interest. If you are a student, look into specially designed student credit cards as your stepping stone into the financial world. The best thing that we can all do is to know what it is that we are getting into. Before you secure any of the Visa credit cards, make sure that you read the terms and conditions that go along with the card that you are interested in. You may have to look closely at the page of the site you are on to see the area where you can click to get the information that you need to make the choice that's best for you and your lifestyle. When used responsibly Chase credit cards and others can open a lot of doors for you!