Student Credit Card Myths to Avoid

One of the most widespread myths when it comes to student credit cards is that they aren’t reflected on your credit report the same way that other credit cards are. What should be understood is that a credit report is a very basic document that details what debts you have and how you pay on them. It doesn’t matter what type of card it is, whether you pay on the debt or not is what is important. Don’t get stuck thinking that what you do with the student credit card in your wallet won’t matter in the long run.


Another common myth associated with student credit cards is that if you pay just the minimum amount due you are doing enough. This isn’t the case, in fact if you want to do yourself a favor you will always pay more than the minimum amount due, even if you only pay more by $5 or $10. This will not only help you pay down the account balance because you are paying more than interest, it will also look really good on your credit report.


Many students assume that more student cards are better, and generally this is not the case. If you have one card and you use it wisely it is more of an testament to your credit worthiness than if you have three credit cards and you pay on them part of the time. Credit worthiness is quite complicated, in fact it is more complicated than most people realize. If you have too much credit out there in your name it could actually hold you back later on than if you have just a little bit of positive credit reported.


As you can see, there are many pitfalls associated with student credit cards and they can end up costing you big now and in the future. The answer to all of these myths is to understand as much as you can about how the credit system works so you can use the credit card when you need it, but also use it in such a way that it will help you obtain the buying power that you may need in the future when you want or need to buy a home or a car or take out a personal loan of some sort. Credit starts the day you use that first credit card, so understand what you are getting into before you swipe the card even one time!

Credit Report Scores
Below is a chart of credit report scores. Credit report scores are important when it comes to applying for a credit card. To find out what your credit report score is, please click on the link below.
Great Credit
Good Credit
Fair Credit
Poor Credit
No Credit
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