Credit Card Mistakes; Here's How Students Make And Avoid Them

1. Credit Cards Without a Clear Budget

Using credit cards can lead to overspending, particularly if one is unaware of spending limits. Many students tend to use credit cards without considering their budget, which can result in increasing debt.

2. Credit Card Activity Regularly

Sometimes, students neglect to examine their credit card statements or bills, which can lead to missed payments, hidden charges, or potential fraud.

3. Multiple Credit Cards at Once

Many students apply for multiple credit cards at the same time to earn rewards or increase their credit limit. However, each application triggers a hard inquiry on their credit report, which can reduce their score and negatively impact their chances of being approved for future credit.

4. Card Rewards and Benefits

A lot of students do not utilize the points, cashback, and other advantages offered by their credit cards. Missing out on these benefits means losing opportunities to earn rewards for everyday spending.

5. Non-Essential Purchase

It can be enticing and enjoyable to use a credit card for dining out and shopping, but many individuals don't always plan how to pay their bills, which can rapidly result in accumulating debt.