Use Your Unsecured Credit Card With Responsibility

Use Your Unsecured Credit Card With Responsibility

by Mike Selvon

As anyone can attest, the need for a good credit score rules the world. Credit is used to determine interest rates on loans, whether or not you can have an apartment or house to rent and can even dictate whether or not you get a job.

Regardless of the debates revolving around whether or not this is a fair practice, you still need credit. For those students in need of an unsecured credit card, it can be a way to either help their credit rating or a way to damage it. Someone who is not responsible with their credit can find themselves being turned down, even when it comes to trying to obtain an education loan.

A Stafford loan does not base its requirements upon credit scores, but private college loans do. If the student has bad credit due to irresponsibility with an unsecured card, then they can find themselves being denied.

This denial can make the difference between going to school and getting an education, and not being able to attend and losing all hope of getting that job of your dreams. Many are forced to turn to a credit card for bad credit, which means paying very high interest rates and high membership fees in order to use the card.

Before that poor credit becomes a reality, you have to learn how to use your unsecured credit card responsibly. The first step is to not have numerous credit cards. You don't need a MasterCard, a Visa student card and bank credit cards! Start slowly while building your credit.

Many people start building their credit with department store credit cards that they pay off each month or keep at a very low balance. You always need to make your credit card payments on time too.

Another great tip is to always pay more than the minimum monthly payment. This ensures that the balance is being paid down. Paying just the minimum amount will result in the interest rates accumulating and you will be forced to pay longer on the balance.

You can get an unsecured credit card if you use your credit wisely. It is so easy to get into debt, but it can take years and years to overcome. Be responsible and you will be able to build your credit score.

Should the need arise and you wish to apply for a private college loan, a good rating will make it will be easier to obtain one on your own rather than being forced to find a co-signer. Use your credit card for emergencies and keep track of your spending. It will benefit you now and in the future.