We know there’s nothing a college aged student loves to hear more than “check with your parents.” Yeah, right. Once you’re out of the home and off to college on your own, the last thing in the world you want to hear is that you should check with your parents about anything. But when the credit card companies come calling (and they will), take our free advice on this one: invite your parents to help you with the credit card comparison.
You see, there are a lot of different kinds of credit cards. They’re not all created equally. And while any of them can get you in trouble if you’re not careful with them, a little credit card comparison can go a long ways towards saving you money and hassle down the road.
Here are some things to talk about with your parents:
- Should you get a rewards credit card, and if so, which kind? If you are going to school out of state and need to occasionally fly home, you may want to consider a credit card which offers frequent flier miles. Or, if you drive a lot, you may want a card which gives you reward points when you buy gas. Bet you didn’t even know those were options, did you? Your parents did.
- How much of a limit can you afford to carry? It’s not always to your advantage to get a high credit limit. You can get yourself in a lot of trouble that way. Have your parents’ help you budget and figure out what kind of a balance you can afford to run on your credit card.
- What kind of fees will you have to pay with this card? While all of the information is generally on the application for your credit card, a lot of it may be difficult to understand, especially if you’ve never dealt with credit cards before. Have your parents go over the fine print with you so that you really know what you’re getting into.
On top of talking with your parents about any credit card you are considering accepting, let us suggest that you keep the balance as close to zero as you can. If you’re like most students, you’re going to have enough to worry about paying off with your student loans. The last thing you need is a large credit card balance. We know, you’re going to get a job paying a bazillion dollars a year, but even still, you’ve got better uses for that money.