Money
If
ever there were a time when we wished that
money would grow on trees, it would be in
school. Because cash is short, banks target
students with credit cards.
Credit
Cards
Credit
cards are everywhere on campus. They are
also in malls, stadiums and pretty much
anywhere else ''you want to be.'' Even if
we anticipate getting rejected, we seem
to fill applications out to get that free
hat, pen or mug. But despite thinking that
we would not get approved, lo and behold,
a credit card is granted through the mail
shortly thereafter.
Credit
cards are great as they allow some students
to make ends meet: buy groceries and purchase
much-needed books as exams get close. But
credit cards represent a double-edged sword.
Here are some questions any student (or
adult for that matter) should ask before
filling out that application.
Do
You Need One?
As
basic as this may sound, some students apply
for cards when they do not need one. If
you have a job or your parents send you
money, a credit card may be good to manage
your cash flow. But if your goal is to collect
points, this is not a good strategy. If
you like the insurance offered by most credit
cards, keep in mind that regular bank debit
cards offer the same thing. So use debit
cards for most purchases and you will be
covered.
A
good reason to use credit cards is to keep
track of your expenses. Do this if you have
the discipline to budget your finances.
Another
good reason to get credit cards is that
one is required to make purchases online.
The Web offers great discounts, comparative
shopping and a wider variety than offline
outlets. But transactions are made using
a credit card, not a debit card. Unless
you plan to call mom and dad so they can
make basic online purchases for you, you
should look into getting one.
Buyer
Beware
You
should keep in mind that despite never having
signed for a purchase, the combination of
your credit card number and the expiry date
constitutes an authorization.
Why
Do You Need One?
Managing
cash flow is one of the main reasons why
you need a card in college. Some of the
benefits may be attractive as well. Unless
you are disciplined and will not run up
debt, then you may prefer to stay away.
If you have ample cash in your account,
then you may not need a card. You may perceive
to have your credit limit on top of your
cash to play with and this is a recipe for
disaster. Nothing in life comes for free
after all.
Call
And Inquire
You
may be offered credit cards from day one
at school. The problem is that the people
offering you cards are salesmen and not
customer service representatives. CSRs are
the most informed people on the rules and
regulations. Keep in mind that banks send
you a document with all the rules and regulations
when you get a card and you are expected
to know what they are. Signing an application
without knowing all of the facts can be
dangerous. At least call the bank in question
if you are thinking of getting a card, speak
to an agent and ask questions.
Get
The Agent's Name
You
should always get the name of the person
you are speaking with. This applies to banks,
governments, school and your personal affairs.
Without making it sound like you distrust
them, ask for their first and last name.
If they refuse, at least get a phone extension
or file number. This only makes them double
check all the information and gives you
some proof. Do not forget, when dealing
with large institutions, the burden of proof
falls on you!
Everything
Should Be Documented
Keep
all documents and related information on
file. Open files for school, bank accounts
and company interviews. It is even useful
to have a one-page summary of all of the
correspondence, paperwork and calls you
make in order to keep track of developments
and stay on top of your affairs.
Just
remember that your actions today could come
back to haunt
you tomorrow.
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