WIU Title IV School Code 001780

Avoid Financial Defeat

Chances are, before a college student even settles into the dorm, credit card teams will be on campus soliciting business.

Used responsibly, credit cards can be helpful in an emergency and for establishing credit. But many college students aren't making good financial decisions.

Here are some tips on using credit wisely, whether you are a college student or a senior citizen.

Be aware of teaser rates. Credit card companies offer low introductory interest rates to attract new customers. These rates typically last only a few months and spike upwards of 20 percent.
Stick with one credit card. It is easier to manage one credit card and pay off one bill at the end of the month.
Pay in full every month. This is a good habit to get into, which means don't charge more than you can pay off at the end of the month.
Pay on time. Late penalties are costly and some companies will increase the interest rate after one or two overdue payments.
Avoid cash advances. Be aware that interest rates on cash advances might be much higher than the rates charged on purchases.
Protect your credit history. As soon as you start using a card, it becomes part of your credit history. And once there is a mark on your credit record it remains even if the bill is paid later.
Don't exceed credit limit. This helps avoid penalties and ensures that you will have credit available in the event of an emergency.
Review statements carefully. Watch for discrepancies or errors on your monthly statement.
Report a lost or stolen card immediately. Keep a copy of your credit card account number and financial institution name and customer service number in a convenient secure place.

Source: Illinois CPA Society