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Everyone knows that their credit rating can significantly impact their lives. A good credit rating results in better lending rates, when you need to apply for a loan and can even make a difference in your employability. Just thirty years ago, credit card companies were handing out credit cards like candy. You'd receive credit card offers with low interest rates and a sky's-the-limit line of credit. At the time, credit cards for college students was a primary target group. Such offers were mass mailed and all you needed to do was sign on the dotted line. Almost everyone jumped on the bandwagon, buying those desired items they couldn't pay cash for, but could make a monthly payment. How convenient! If you weren't raised by financial whizzes and especially if you're a young person, you might not have any idea how to manage your money. If you see that "must have" item, you just pull out that plastic, forgetting that the bill will come due at the end of the month. If you're in school, you probably see a lot of these credit cards for college students being offered. Before you even look at any of these applications, it would probably be a good idea to ask your parents for some advice. They may have had some experiences with these credit cards for college students when they were still attending university back before you were born; of course now, these cards have a much higher interest rate and fees. If your parents got themselves into a debt which it took years to pay off, this is a time where you should not follow the example set by your parents. Amazing as it might seem, credit cards for college students are being offered just as much as they were a few decades back. However, these offers no longer come with a low APR. The fees are a lot higher too and just one late payment can send your APR skyrocketing. There are credit card companies which may not ask for a lot of information before giving out that card. You have the responsibility to read all of the fine print (yes, all of it) before you sign anything. These credit card agreements tend to have a lot of small print and be quite long - to make you not read it. Read it anyways and make sure that you understand all of the terms and conditions. Use caution when looking at credit cards for college students and read the cardholder agreement very carefully before you sign. Remember, this card isn't some windfall; you need to be able to pay off the balance every month. If you do have an emergency and max your card out, then you should make at least three times the minimum monthly payment to pay this balance off as quickly as possible. If used wisely, a credit card can be a great thing for you.
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