A college student's guide to credit

As a new student on campus, be prepared for the avalanche of credit card offers soon to fill your mailbox. If you don't have a credit card and are considering signing up, read on. Credit can be very slippery if not used properly, yet careful charging and paying helps establish a good credit reputation. Here are four rules to live by.


1. Baby-step your way into credit card use.
Look for a card with no annual fee and a limit of no more than $500. Stay below your limit so you can pay off your balance each month. Check out what happened to this college grad who thought she was being cautious with her cards in college.

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2. Always be punctual.
Ditch the "better-late-than-never" attitude and always make it a point to pay on time.

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Source: BANK RATE