Being a student in the US, managing my personal finances seemed to be a daunting task but having vital information at the right time has really proven useful. I hope my blog will provide you some information to take decisions that will relieve the strain on your pockets.
I have been using credit cards for quite a while now (though dad used to pay every bill...really miss the old times). Since coming to America for my masters which has made me in-charge of my personal finances, I am really enlightened about this double edge sword.
No matter what any one says about the perils of using a credit card and the taxes behind it, the fact is, living in a country where carrying cash is Passé and not recommended for security reasons, you cannot live without a credit card.
The thing I like about my credit card is that it virtually gives you a 30-day interest free loan with more rewards as you spend more. The word virtually is important here though. The credit card also builds a credit history as you go along. It basically determines your credit worthiness by assigning a credit score to each individual. This Credit score is really vital for students as it will play an important role in the future in determining the interest rates when you apply for a loan for a car or a house and may even determine the acceptance or rejection of your loan application.
Another personal favorite reason for using credit cards is they will offer various Rewards. These range from airline miles to cash back to a general system of points that can be used for all kinds of purchases. Using my SBI (State Bank of India) card back in India, I used to get really cool discounts at gas stations (which is a considerable achievement given the rising gas prices). Basically, the more you spend the more you are rewarded.
The only thing I (and my dad too...) would advise you is MAKE SURE is that YOU PAY the full bill amount every month. So If you use your card wisely, the Money you have spent can work for you.
So I would advice any young adult to open a bank account, get a credit card and get the ball rolling....
