With back to school just around the corner, college students will be returning to their educational institutions in no time. Getting excited about being on your own again can provoke some reckless spending, but Quality Credit Repair, one of the best debt relief companies in Philadelphia, is here to help you avoid credit card blunders. Although establishing good credit and avoiding debt may be at the bottom of a college student’s priorities, Quality Credit Repair encourages you to review these easy to follow credit card tips.
Create a Budget
The easiest way to manage your finances is to create a budget. To begin planning your budget, consider your monthly income, and identify your monthly expenses such as food, car insurance, gas, and school supplies. From here, you can produce a weekly and monthly budget. To help you track how much you are spending, download a budgeting app, or hand-write your spending in a notebook. Do not blindly spend money, and be sure to keep tabs on how much you are spending. Along with properly budgeting, open your bills once you receive them and pay them as soon as possible to avoid any issues later in the month.
Be Aware of Your Credit
Your credit score is a three-digit number that ranges from 300 to 850. Lenders use your credit score to determine your accountability to repay debts. Post-graduation plans include a lot of change, from apartment hunting to navigating loans, and your credit score will be a significant determinant in these instances. A bad credit score can cause difficulties in achieving your goals, so it’s beneficial to establish good credit as soon as possible.
Pay Your Bills on Time
Paying bills promptly is a critical part of establishing good credit. Young adults are susceptible to missing bills and experiencing late fees, so make sure you stay organized. Schedule alerts on your phone or online calendar; choose whatever system works for you. Another strategy for paying bills on time is to set up automatic alerts and payments. Bill reminders and continual evaluations of your bank account are some of the easiest ways to keep your finances on track.
Establish a Plan to Pay off Your Debt
Besides from keeping track of spending, you need to make a plan to pay off your credit card debt. You should pay off your credit card as soon as possible, because it is extremely easy to rack up your debt. Without a set plan on how you’re going to pay it down, it’s easy to mindlessly use your credit card and end up drowning in debt. Think ahead and be aware of your spending.
Learn About APR
APR is the yearly interest rate of your credit card. If you charge your credit card and do not pay off the balance by the time it’s due, it accumulates interest. Paying the balance on time each month will not generate interest.
The grace period is the duration between your card’s billing cycle’s end and the date your payment is due. Most times, credit card companies provide grace periods for new purchases. With the majority of credit card companies, if you pay your balance in full and have no large cash advances, you will not be charged interest on new purchases during the grace period. In other words, know the balance of your credit card, the date your payment is due, the purchase and penalty APR, and the date your introductory APR ends.
Stay on Track
Keeping up with your finances doesn’t have to be challenging. Thanks to Quality Credit Repair, you can head back to college with a new understanding of your credit score, credit card, and any associated debt! If you’re in need of a credit repair clinic, Quality Credit Repair is the place for you. Whether you’re looking for credit assistance or would like to learn more information about your finances, feel free to contact us today.