Growing Up With Credit Cards

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In today’s technological era, it’s easy to pull out your credit card, swipe, and walk away. In fact, this is what the young American college crowd is growing up with is credit cards. If you remember only a few years ago, a lot of places weren’t too friendly with credit cards. In fact, you could walk into just about any fast food place and they wouldn’t accept a credit card at all! Credit cards are great for people on the go and for people who don’t like to carry cash. As you may know by now, a credit card company can’t hold you liable for anything over fifty dollars that you didn’t spend. This always puts some people at ease. In today’s world, students like to spend a lot of money. Anything from stupid things like party supplies to things they absolutely need like college books. The thing that most college students aren’t aware of is their future, the fees that the credit cards hold, and how hurting their score can hurt them a lot down the road. Now while there isn’t anything wrong with purchasing everything with your credit card, a college student must look into their future. 99% of every student graduate is going to have some sort of debt that is related to school. What they don’t need is a credit card debt on top of that. Especially if the debt is for things you don’t really need. As bad as you want to live for the present, a student has to look down the road and figure out how to actively plan their budget and how they should get out of debt as soon as possible, making it his/her number one priority. A future is very important when it comes to a credit card and budget but what most college students don’t realize is the fees that come along with a credit card. From the high APR rates to the late fees, this is exactly how the credit card companies make their money. There is one rule that every college student should have beaten into their head and that is that they should pay their bill of in time. If this bill isn’t paid in full each month, a hefty APR rate that usually ranges anywhere from 15% and beyond is applied to the bill. You can only imagine how quick this will add up. If you have a late fee and a unpaid balance of $500, the fee can easily be around the $50 mark. An informed student is a responsible student. As bad as you want to live your life for today, you have to be responsible with your credit card. Paying your bill off in time and knowing about the fees will help your credit score, which in turn will allow you to get a better interest rate on your car and home loan. What does this mean for you? This means that you paying less in interest, which allows you to save up more money and retire early. If you’re a self-motivate individual that cares about their financial outlook, it’s important that you know the perks and benefits of a credit card. If you follow these simple rules, you will be one step closer to living the American dream.

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