The best way to use a student credit card is for small everyday purchases that you pay for in full by the due date each month. This will help your credit score improve as well as get you in the habit of paying bills on time and spending only what you can afford to repay. Only using a portion of your credit line – less than 30% is ideal – will also help your credit score. And it will leave you with enough available credit left over for potential emergencies, which is a key reason for students to have a credit card.
But that’s not the only way to use a credit card as a college student. In fact, you don’t even need to use your card to benefit, as long as you have one. You can learn more that option and other tips for how to make use of student credit cards below.
Best Ways to Use a Student Credit Card:
Make Everyday Purchases & Pay On Time: There’s nothing wrong with regularly making purchases with your student credit card, as long as you always pay your bill on time and in full. You don’t want to waste money on interest or get into the habit of spending more than you can afford to repay. And missed payments are the most common reason for credit score damage.
Carry Your Card for Emergencies Only: This is sort of a hybrid of the first two options. Most young people don’t carry cash, and a credit card could help you avoid getting stranded somewhere.
What you don’t want to do is miss payments, max out your spending limit or otherwise manage your account irresponsibly. That would only put you behind the eight ball after graduation.
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