Many many times students receive credit card offers before they even know how to establish a budget or know what a budget is.

In today's society, credit has become a necessity rather than a luxury.  Good credit establishes and protects your name as one that can be trusted when buying a home, purchasing an automobile, applying for credit cards or simply securing a loan.  

Now is the time for college students to manage your credit from the start.

As a graduating high school student or a student already in college you will be bombarded with tons of credit card offers.  The credit card offers are designed to help you establish credit early in your life. Establishing credit early is a great ideal is theory but as practical application goes, not EVERYONE is ready or able to handle the financial obligation a credit card bring with it.  There are pitfalls.

Drive in Peace will highlight the benefits you gain by keeping your credit card account in good standing with your company.  In addition, we will show how to avoid the financial pitfalls many students suffer.
          
         A Great Start

A good credit history demonstrates you are reliable and dependable when it comes to your finances and because of that you enjoy certain advantages:
*  People with good established credit enjoy convenience when it comes to renting cars, reserving hotel rooms, charging airlines tickets just to name only a few.
*  Better and most attractive interest rates on mortgages, all types of loans, car loans, credit cards, etc.
*  Great credit also means when an unexpected emergency arise, you control your own situation rather then waiting until payday or borrowing from family or friends.

Now is the time for college students to manage your credit from the start.

HOW TO MAINTAIN A GOOD CREDIT HISTORY

PLEASE KEEP IN MIND THOSE GREAT ADVANTAGES AND BENEFITS CAN WORK AGAINST YOU IF YOUR ACCOUNT IS NOT KEPT IN GOOD STANDING.  Plus, a bad payment history can make it extremely difficult to get a top paying, highly sort-after job.  Potential employers do perform credit checks on candidates for top jobs.  Imagine spending four years studying like crazy and spending untold hours in the library, to have the job you want slip through your hands because of poor credit.  How can you get a Company Credit Card if you can't manage your own financial affairs?

For ALL students who have just received their first credit card offer and is considering applying, PLEASE PLEASE use the following as steadfast rules of thumb:<TOP>

-IF THERE IS NO CONSISTENT FORM OF INCOME OR MONEY COMING IN ON A REGULAR BASIS, then you are not quite ready for a credit card account.  CASH ADVANCES FROM THE CARD IS NOT INCOME.

-IF YOU DON’T HAVE A CHECKING ACCOUNT, then you are not ready for a card just yet.

-IF YOU HAVE NOT SUCCESSFULLY MANAGED A CHECKING ACCOUNT 4-6 MONTHS, then wait until you show this discipline before taking on another financial task such as a credit card.

Once those simply rules of thumb are followed and you have applied and received your account, maintaining the credit card account is relatively easy just:

*Send in the required payment.  First ALWAYS ALWAYS try NOT to carry a balance from month to month.  For example, if you receive your card on January 1, start charging on January 2 right on thru to January 28.  The charges from Jan. 1 thru Jan. 28 total $300.  Well, you will receive a statement in February listing the charges and telling you that you can pay a minimum amount of the $300 due by a date in March.  PLEASE try to pay the entire balance of $300 that way you will not be charged any finance charges.  Paying the minimum, or any amount greater then the minimum, is OK if you want finance charges.    The minimum payment is determined by the credit card company and is on your statement.

*Make your payment on time.  A due date for your payment will be listed on the statement you receive.  Mail your payment in 5-7 business days prior to the listed date it is due.  ALWAYS consider and allow for the Post Office handling.  There is never an exception for a late payment.  When the credit card company report your payment history to the credit bureaus each month, there will not be and explanation as to why it was late.

*Do Not Exceed your credit limit.  NEVER DO IT!!  Some companies allow you to go over the limit, then they charge an over limit fee.  Other companies simply will not let the card go over the limit.  You can call the credit card companies and ask them to set up your account in order that it does not go over the limit.  They can do it.

Now is the time for college students to manage your credit from the start.

IF YOU GET BEHIND ON YOUR ACCOUNT


When a cardholder falls behind in making payments, they are sent to the Collections Department of the particular company in hope of getting you back on track.  In most situations the Collections department primary focus and goal is to get you back in good standing.  At this point we caution you to be very careful.  Certainly unexpected events and circumstances crop up and cause a temporary setback in our monthly financial planning.  However, if the Collections Department has to contact you a second time about making on-time payments, PLEASE CUT THE CARD UP AND RETURN TO THE COMPANY.  At this point your focus should be on saving and protecting your credit history.  The one thing a young person DOES NOT NEED, whether in college or not, on their credit record is a CHARGE-OFF.  A charge-off occurs when a company attempts to get their money from the cardholder but the cardholder is unable to pay or unwilling to make arrangements to pay.   This plays out is court often times as a judgment that is entered against the cardholder.  A CHARGE-OFF tells future creditors you simply BLEW off the other company or companies and might do the same to them.  AVOID CHARGE-OFFS AT ALL COSTS.

Now is the time for college students to manage your credit from the start.                <TOP>

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