Whether or not you have thought about this, very soon you are going to leave this school and go out there into the world and live as a self supporting adult.  Unless, of course, you become a boomerang.  In any event, the information below will be useful for you in avoiding some of the problems that can arise when you have a credit card.


Credit Availability:

Your credit availability will depend on the following considerations:

Costs of Credit:

The credit application or contract will disclose the terms and conditions for the credit card use. The following terms and conditions will effect the total cost of credit:


Annual Fee  A yearly charge similar to a membership fee, usually ranges between $0 and $50. 
Annual Percentage Rate  The APR is the cost of credit expressed as an (APR) yearly rate. 
Finance Charge  The dollar amount paid to use credit, includes interest and all charges associated with the transaction. 
Grace Period  The grace period is the number of days you have before a credit card company starts charging interest on new purchases. Not all credit cards have a grace period. 
Periodic Rate  The interest rate the card issuer applies to your outstanding account balance to figure the finance charge for each billing cycle. 
Transaction Fees  Some credit card issuers charge a fee for a cash advance, a late payment or exceeding your credit limit. There may be a monthly fee if you do not use your card. 

Credit Card Responsibilities:

With your first purchase on a credit card, you have entered into a legal agreement with the credit card company. You then must understand and abide by the terms and conditions of the agreement. Some other responsibilities are:

Protect Your Student Credit Record :

Using Student Credit Cards to Build "good credit"

1. Create a BUDGET, and stick to that BUDGET. You know how much money you are going to earn each month, so create a BUDGET according to your KNOWN income and always know exactly what you PLAN to charge on your credit card each month. Then, stick to that plan!

2. Use your student credit on a regular basis, every month, TO MAKE SMALL, PLANNED PURCHASES. Then, MOST IMPORTANTLY, pay off your entire balance each month.

3. Instead of writing checks, use your student credit card when possible, as credit transactions get reported to the credit bureaus, checks do not. Again, use your credit card only when it fits in to the PLAN you have in sticking to your BUDGET. A few examples of these reoccurring expenses are your:

Monthly telephone bills
-Utility Bills

**Many companies allow you to sign up for online bill pay, where your credit card will be charged on the same day of each month. 

4. Pay your entire balance 7 days BEFORE the due date on your bill.

5. Your goal is to get a student credit card in your "own name" and make the account look like it is being "used," but not "over-used." When you do so, on a consistent basis, your credit score will rise as your debt ratio will be low while your usage will be low. Also, your payment history will be consistent and on time... both of which will raise your credit score over time.

6. Common mistakes you should try to avoid include: -Impulse Buys (where you randomly purchase items you have not budgeted or planned on).
- Overspending.
-Losing track of your statements.

7. Always be aware of "FEES" that come with your credit card.  Depending on the credit card, "fees" are sometime charged to the card holder, the most common being an annual fee that is charged to you for using the card. Another type of fee is a LATE FEE, which is charged to your account when your are LATE in making a payment... which is just another reason to pay your bill 7 days before the due date.
Your goal here is to get a card in your own name and make the account look active. Doing so consistently will make your credit report look better. Obviously, you want to make sure that you pay on time while you are activating your account.


 Legal filing with a court of a person's or company's inability to repay debts. Bankruptcy is a LAST RESORT. It kills credit ratings and remains on credit reports for 10 years. Federal student loans, Federal income tax debt and Child support are all exempt from bankruptcy protection laws. There are two basic type of Bankruptcy: Chapter 7 and Chapter 13.

(Chapter 7 Bankruptcy)

�In a Chapter 7 Bankruptcy, a court or judge resolves most debts by selling assets and property of the person who filed for the bankruptcy. The court can take ALL assets ranging from cars and homes, to furnishings, jewelry or anything else that has value. Assets are then sold to pay off the debt of the filer.

�Chapter 7 bankruptcy will not eliminate debts from state or federal taxes, child support, federal student loans, court fines or judgements.

NOTE: A Chapter 7 filing will remain on a credit report for 10 years.

(Chapter 13 Bankruptcy)

�In a Chapter 13 agreement, the court/judge creates a debt repayment plan which allows the bankruptcy filer to keep their property.

�In order to qualify to file under Chapter 13 bankruptcy, a person must have steady income and is forced to pay part of their income to respective creditors. The court/judge allows the bankruptcy filer to keep certain assets that have debts against them only if they pay them off under terms settled by the ruling of the court.

�Chapter 13 bankruptcy filing also remains on a person's credit report for 10 years, however there is a better chance of obtaining future loans or credit than if filed as chapter 7.



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thanks for all your efforts!