Credit Card Crash Course Pt. 1

Credit Cards should be called Short-Term Loan Cards. Sure, they both mean the same thing...but one puts a little more perspective on the plastic in your pocket, no? What many Americans don't know is that credit cards are one of the best tools for your money available. In this post, I'll go over a list of reasons why you should have a card, the guideline for safe use and how to find the card which will benefit you most. Here's that list:

1. Consumer Protection. This means if you buy a big-ticket item like a TV and it doesn't work or you're not content with it, give your card provider's company a call. They'll refund you the price automatically and mobilize the full force of their legal officers to your cause. 
2. Automatic Warranty Doubling. Up to a year. Just because you purchased something with a credit card as opposed to cash or debit. Need I say more?
3. Trip-Cancellation Insurance. Can't go? No problem.
4. Establish Credit. This benefit is severely underrated and misunderstood. I'll go over how your credit score works and how that affects you in a later blog post, but rest easy that proper credit card usage can save you thousands (if not hundreds of thousands) of dollars down the line.
5. Concierge Services. Need a last-minute reservation to a restaurant? Need a ride? Most companies offer 24/7 customer support and many other services in major cities. Most people never even know of these additional services. This varies from company to company, but finding out is simple as a phone call.
6. Rewards. Plane tickets, cash-back, gas-rewards, grocery-rewards, etc. Imagine every time you brush your teeth you get paid for it. Awesome, right? Well if you bought your toothpaste with your credit card, you are. (Note: Cash-back cards generally save you the least. Find a need you have and then find the card to fill it.) 
7. Tracking Your Spending. This isn't for everybody, but credit cards make it really easy to track exactly what you spend on. Personally, I use http://www.mint.com/ to monitor my spending habits. It's all free and surprisingly informative. And embarrassing.

Sounds great, right? Well it might not be great. It might ruin your life if you don't follow this one rule: Always, always always pay your full balance on time. Always. If you can't pay the full balance, pay as much as you can. Most cards will hit students with a 20.99% interest rate for late payments. I won't get into the math this post (how credit card debt works and what you can do to minimize it is in Pt. 2), but if you can't handle this then don't get a credit card. If you can't control your spending you'll be doing yourself more harm than good.


To find a credit card you will have to do some looking around. You should never, never apply for a card offered to you in the mail or by retail chains. I'll be more specific: if you don't seek out the card based on your needs, you shouldn't apply for it. Ever.

I'll keep this part simple: go here. You can sort the types of cards you view but I specifically linked to all the student cards. And don't use Capital One. From personal experiences my friends have had, this place has a reputation for horrible customer service. Nearly all the major chains offer 24/7 customer support for free. Capital One doesn't last I heard from a fellow student my age. Naturally, you can explore options through your bank and other outlets too (various websites, friends, family, anything you can access with your network).

Closing Thoughts
Don't let your parents decide whether or not you should get a credit card. Your financial future is yours. My parents were vehemently against me getting one. In addition to not having any problems with it, I got a free bottle of a cologne I wanted for Christmas. They didn't get it for me, mainly because I'm pretty sure they think nothing can make me smell better. Anyway, it was over a $100 value for little more than 10 minutes a month reviewing my statement and paying it off. Almost a dollar a minute.

I'd like to caution you to read the rest of this crash course before you apply for one. In Credit Card Crash Course Pt. 2, I'll go over how to maintain your credit card. This includes the quickest and cheapest ways to resolve any problems you might encounter.