Financial Aid Overview

Is a Credit Card Right for Me?

On many campuses you'll find booths set up by credit card companies wanting you to apply for a credit card. Credit cards aren't necessarily bad—as long as you think before you use them. They can be convenient, and they can help you build a credit history, which is important. To make sure you build a good credit history, use your credit cards wisely.

The biggest temptation with credit cards is to spend to your credit limit, figuring you'll pay it off. After all, you can easily handle the minimum payment each month, which will keep your credit score high. But if you make just the minimum payment, it will take you a long time to pay off your account:

If you're 18 years old, charge $3,500 at 18 percent interest, and only make the minimum payment, you'll be 45 by the time you pay the charges off. You will also pay almost $8,000 in interest on top of the original $3,500.

You might want to consider a debit card from your bank. Any time you use it, the amount is deducted from your checking account.

Another option is a prepaid credit card. You can only use the amount of money that's "loaded" into the card.

If you decide you need a credit card, be smart. Review the bill when it comes in and pay before the deadline. Only charge as much as you can pay off when the bill comes. If you do have to charge more, pay more than the minimum to avoid paying more interest.

Don't let credit card debt and a poor credit rating haunt you. It's your future at stake.