Thinking about applying for a credit card?

Qualifying for a student credit card isn't based on your income. If you are 18, you could qualify for one without your parent's approval. That means you can get a credit card with a fairly high credit limit, even though you don't earn enough to pay for it.

Credit cards will affect your credit rating, so consider this decision carefully. Not paying your bills on time can lead to a poor credit rating, which may hurt your ability to buy a car or rent an apartment.

On a positive note, credit cards are a good way to establish good credit. To do so, keep your balances low and pay them on time. And it's a good idea to pay them off monthly!

To make an informed decision, consider the following before completing an application:

• Read the fine print. It provides important information on late charges, over-the-limit fees, annual fees, and interest rates. Some cards have late fees as high as $30.
• Can you afford the minimum payment? Even if you don't have a job, you will be required to make the minimum payment. Not doing so will result in late charges and could increase your interest rates.
• Beware of introductory interest rates. Companies may advertise a low interest rate but it often jumps substantially after a few months.
• Don't apply for a card just because they're offering cool free stuff.

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