4. Know the rules of your card. Most cards have some pretty intricate rules that they require users to follow. Violate one and you could end up paying penalty fees, having your rate raised and damaging your credit record, which would increase the costs if you ever need to borrow money. This means you have to read all that fine print that comes with the card. From time to time, credit card companies will change the rules. They could raise the rate, switch what day your payment is due, etc. You'll get a notice in the mail. "They send out these little tissue-thin booklets with agate type," says Brock. "When those things come in the mail, it's almost always some bad news. Your job is to find the bad news." 5. Have your own rules for using the card. The dumbest way to run up a bill? A long series of little things you don't even remember buying. "You should not be charging movie tickets, you should not be charging lunches on a credit card," says Brock. Decide ahead of time what the card is for and how you'll pay it off when you do use it. 6. Protect your credit rating. There's another reason to be careful with your card. How you treat it can have a big impact on your quality of life. Now that you have a credit card, you'll have a credit report. This is a record of your personal information and how you're handling your finances. If you make any mistakes, they stay on your record for years. There are three credit reporting agencies: Equifax, Experian and TransUnion. Card companies will usually report to one, two or all three. This is also where financial institutions will go for information when you apply for a loan. A bad rating means you either will be denied loans or will have to pay higher interest rates. Many times, prospective employers and landlords will also check your credit report to see if you're responsible with money. 7. Read the credit card statement as soon as it comes.  | | What to look for: | | | |
8. Use a card, pay the balance. "Students shouldn't charge more than they can afford to pay off at the end of the month," says Ken Paulsen, author of "Living the College Life" and adjunct professor of journalism at New York University. His advice: Evaluate what you need and distinguish that from what you want. replacecontent-tcm:8-5455 "There's nothing wrong with wanting something costly," Paulsen says. "Ask yourself: 'Can I afford it? How will I pay for it?' And the answer is not, 'With my credit card.'" |