The start of the year is always a good time to reflect on the previous events and make plans for the better. If you own a student credit card, consider the following tips that you can include in your list of New Year’s Resolutions.
Zero in your credit card debt before 2012. Do you still have unpaid balances in your credit card accounts? If possible, pay off your full balance before the New Year begins. Thus, you can start the year fresh without unpaid charges to worry about.
Consolidate your credit card debt. If you have unpaid balances on a number of credit cards, consider debt consolidation by transferring your balances from a high rate credit card to a card with a low rate. You can also apply for a new student credit card with zero balance transfer interest rate. This way, you can concentrate on paying off your original balance without incurring additional APR charges each month.
Pay off your monthly balance in full. Make it a habit to pay off your credit card balance in full each month to avoid interest rate charges. If you’re not sure whether or not you can afford full payment on time, it’s best to skip using your credit card and pay with cash instead.
Start building your savings account. If you have not yet started building your own savings account, then it’s about time to think about building one. Open a savings account with your local bank or ask your parent to assist you in opening an account.
Get a part time job. College years are the perfect time for you to train yourself in the ways of life. Owning a student credit card is a good way to practice control and credit management. Acquiring part time jobs during school breaks gives you a chance to develop your skills and earn your own income at the same time. Use the money you earn to build up your personal savings and to pay off your credit card debt as well.
Pay off your student loans. You do not need to wait until you graduate before starting to pay down your student loans. You can use your earnings from part time jobs to pay off even the interest rate of your student loan. Hence, you can reduce your student loan debt so you can have much less debt when you graduate.
Monitor your personal credit report. Consumers have the right to receive one free credit report from each major credit bureau (Experian, Equifax,TransUnion) once each year. You can order your free report online at www.annualcreditreport.com.
Carefully check your report if there are any errors, inaccurate detail or outdated information. Keep in mind that even a single error can badly pull down your credit score. It is also your consumer right to dispute credit report errors. If you notice any detail that needs to be corrected, you should send a letter to the bureau that issued your report. Disputing credit report errors can take up to 30 days to complete.
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