When it comes to credit cards it’s very important to know key factors on how to use them correctly, especially as a student. If you don’t know how to properly use them, you could end up with a bad credit score or worse: end up in debt. To help prevent those scenarios, here are some tips you should know as a student.

You Choose Your Credit Card, not the Other Way Around

It’s important to not just apply for a credit card because you want a “free” new item, like a shirt or phone case. It’s important to research the company and see if the card you want is actually a good offer. Make sure to check for fees, interest rates and of course, compare it to other companies to see which offer is better and benefits you the most. Like stated in thebalance.com, the best credit cards for students to look for have no annual fees, low interest rates, and a low credit limit.

One Credit Card is Enough

As a student, you have a lot to pay for, especially when you think about your future. College includes having to pay for textbooks, food, rent, parking, and membership fees. Having just one credit card can help limit your spending. This will help you to not build up a ton of credit card debt. With one credit card, you can pay for most of those expenses and only focus on one card to pay off.

Control Your Spending

Don’t go over your credit limit! As a student, you might not focus on how much you spend, but it is very important to understand that getting too close to your credit limit makes it more difficult to pay it back in full at the end of each month. Also, know that credit bureaus do not like when you use more than 30% of your credit limit. To avoid overspending, keep track of the items you purchase and record them so you know if you are getting close to your limit.

Your Card, Your Money

Don’t let someone else use your card! When you apply for a credit card it’s for you to use, not anyone else. It’s your credit card, so it’s your responsibility. Allowing a friend or even a family member to borrow your credit card, even if they pay you back, is risky. Also, lending your credit card can cause you to get close to your credit limit because you don’t know how much they are planning to spend.

A Credit Card is Credit, not Debit

Credit cards and debit cards are two different things. Understanding that a credit card is not a debit card is important; don’t take cash out. This is known as a cash advance; credit card companies can charge from 2-5% cash advance fees and other fees due to the withdrawl. It’s important to stay away from cash advances and to read over the terms that go along with cash advances from your credit card company.

Credit cards have many uses, but it’s important to use them correctly. Keep these tips in mind once you receive your first credit card.