Nevertheless, it would be better to make a credit purchase and pay it off on time before applying for the credit card. A credit card just pushes you to the latter quickly.
Getting into debt is easy, but getting out of debt is hard. The credit card is just one item in the list. Hardly bank breaking.Ī well managed credit card is a good thing to have. If they are late on a pending 30 or 40 dollar charge, they may get interest on that for 7 to 9 dollars based on a 23% interest rate. Why shy away? Spend based on what you can pay for the month, and don't use it as a bottomless source of moneyīeing a student, means if they do get approved, their limit will be quite low. But basic economics indicate that learning to manage a credit card is a necessary skill. I do not teach personal finance nor plan to. Shying away from one that actually has no other fees, and offers an easy way to manage does not help at all. The only way to learn to manage a credit card, is to have one. Yes, you can pay less than the full amount due, and that would apply interest on what you did not pay and had to pay.Īs long as you are able to pay the full amount due when its due, interest is not applied. Or you pay less than the full amount you need to pay for that period. Lets try it again, interest rate is only applied if you are late on the full amount due for that period.
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