Don’t fall for the trap of signing up for every credit card offer you receive.
While you’re in college (and especially after you graduate) you’ll start to receive a lot of credit card offers in the mail. This is because you’re young enough to be able to pay them back over a period of time, you haven’t had a chance to develop a bad credit history yet, and at this age you’re more impulsive, so you’ll rack up a lot of debt. Remember that bankers don't send them just to make it easier for you, but they expect to take advantage of that as well. That's why they invade you with so many "credit opportunities".
It's important for you to keep in mind that even if it's not a payment that you make at the moment, you still have to pay it at some point, and as time goes by, the higher the amount will be. So if you have credit cards you should establish certain rules for yourself, such as don’t use them in too high amounts, reserve them for emergencies, leave them at home most of the time, among others.
As intriguing as zero percent interest for three months sounds, don’t accept so many credit cards. Get just one and use it responsibly. It’ll save you from the nightmare of having to consolidate multiple credit cards and being overwhelmed with credit card debt.
We can sum up in just 3 items:
- Simplicity. You only have to worry about one balance, one credit limit, one due date. This makes it easy to maintain a good credit score, since hitting your limit or forgetting to pay your bills on time can knock points off.
- Faster rewards payout. If you’ve invested time in choosing a good rewards credit card and use it consistently, you’ll see your rewards balance pile up more quickly than you would if you were spreading your spending around. If your card has a minimum redemption, amount, you'll be able to cash out more quickly.
- Lower identity theft risk. The more cards you have, the more exposed you are to data theft. Further, the more card accounts you're juggling, the longer it might take for you to notice it someone is using your card information fraudulently.