As a student, using a credit card responsibly is important for building a positive credit history and avoiding debt. Here are some key tips for using a credit card responsibly:
“The most important factor that goes into achieving an excellent credit score is making timely payments. If payments are late, they are assessed a late fee and may even cause an increase in the interest rate (read the fine print). However, if they are more than 30 days late, this is recorded as a negative on their credit report and can result in a decrease of around 100 points. In order to pay on time, they can set up auto-pay. This way the payment is made automatically, regardless of whether they tend to procrastinate or forget to make the payment. Additionally, they need to take the security of their card seriously. This includes never sharing their credit card number with friends or merchants that are not verified. They also need to report their credit card’s loss immediately, if it is stolen or lost. Dara Duguay, of Credit Builders Alliance.