ʚ Credit Card 101 ɞ

When I turned 20 my mom handed me a silver plastic card that has been testing my self control ever since...

Ways to get a credit card:

1. Piggybacking

This right here is actually the main reason I am writing this post. My mom made me an authorized user under her name, which means I get my own card but the sole liability of paying back the card still falls on her. This is a good way to build your credit, but it also means that if the primary owner of the card has bad credit, it will also reflect on your credit. I do pay for everything I purchase using the card; I just send it to my mom instead of the card company. 

Piggybacking is a good way for people under 21 to get a credit card without needing a cosigner. 

2. Student Credit Card

Because of the Credit CARD Act of 2009, people under 21 are no longer able to get a credit card without cosigner or proving independent ability to repay debt, these credit card are designed for students who have no credit.

If you use Bank of America like I do, here's a list of their student credit cards available. I'm pretty sure you will still need a co signer if you're under 21 even for these cards.

How to go about using credit card:

1. Use it wisely. and by wisely I mean use it when you know you have the means to pay off the purchase. 

2. Pay on time. Paying on time will not only save you from late fees but paying late will ding your credit score. Know exactly of the period each statement covers and when it's due. It will help you budget how you use your card. 

3. Pay your balance in full. It will help you prevent accumulating debt. But if you have gone crazy spending and can't really pay off the full amount at least pay more than the minimum, it will still save you tons of money this way.

4. Monitor your account. Keep a list of things you've purchased using your credit card. It will help you see how you've been spending and you'd be able to contest any transaction that was wrong or was not made by you. Keep the receipts. 

Please be wise with using your credit card, you don't wanna be in even more debt on top of your student loans. If you have any question, personal advice, or more information please drop them in the comment box. Let's all learn together.

xx Maine