Credit Card Tutorials

Six Mistakes Committed By Students When Using Credit Cards

As students are mostly at the start of their financial life, they have virtually no idea about the importance of personal finance management or credit history. Most of the students do several mistakes when using credit cards. Here are six of them.

1. Thinking that using many credit cards can improve credit score and credit history. This is a very serious mistake and it may ruin their financial situations for years to come. They need to be financially strong to maintain more than one card at one time. Each card must be paid in full each month. And the logic also doesn’t work. If they have enough income to maintain six cards, they may not need a credit card at all! For most students it becomes next to impossible to maintain the payment schedules of many cards. Ultimately delayed or non-payment payment on a card or two cards will result in lower credit score. (more…)