Once upon a time, not too long ago, my husband thought I had too many credit cards - especially for clothing shops and department stores. John thought having so many credit cards could discredit our credit.
I charged salon services, movie tickets and luncheons with friends - which seem to cost more than lunches. Anyway … John thought the only thing I couldn’t buy on credit was happiness.
Your track record begins with your first student credit card. From there your will begin the building blocks for your financial future. You must control your spending habits, and treat this power like sustainable energy. Never spend more than you are worth. Paying off the full balance every month is like having access to free money. When you avoid paying any interest you have accessed a source of free energy. Plastic junkies are doomed from the start, they must have everything now.
Are you consistently charged late fees on all your bills? Is it hard to decide which bills to pay each month? Do you spend more than 20% of your net monthly income to pay for your credit cards? Have you ever borrowed money to make payments on existing loans? Are your credit cards maxed out most of the time? Do you have so many credit cards that you can only pay the monthly minimum? Have you ever put off something important, like going to the doctor, because you didn’t have enough money?