Page 12 THE VILLADOM TIMES I & II • August 24, 2011 College is a period of firsts. It’s the first time many students are away from home for an extended period of time, the first time students choose their own coursework, and the first time many are left to their own devices with respect to taking care of themselves. College is also the first time many individuals apply for a credit card. Although at this point in life, it’s important for people to begin building their credit histories, it’s just as important for them to carefully consider the variety of credit card options before committing to a card. All cards are definitely not equal, and college students should look for cards that will help them start building a solid credit foundation. So how can college kids find a card that’s fit for them? Consider the following tips. Steer clear of cards with annual fees. Some credit cards charge annual fees, regardless of whether a consumer ever makes a single purchase. Since many cards have similar interest rates, try to find one that doesn’t charge annual fees. Find the best annual percentage rate. While interest rates are often similar, some cards have a better annual percentage rate, or APR. As attractive as low interest rates can be, be especially cautious with cards that promise zero percent interest for the first six or 12 months after signing. That’s because such cards typically have very high APRs. This isn’t a monthly fee, but rather a finance charge referred to as an annual rate. For college students, who may struggle to pay their balances in full each month, a high APR could add considerably to the cost of having a credit card. Don’t overdo it with credit cards. A 2009 report from Sallie Mae, “How Undergraduate Students Use Credit Credit card pointers for today’s college students Cards,” found that, in 2008, half of college undergraduates had four or more credit cards. No college student needs that many credit cards. If possible, college kids should stick to one card. That card should only be used to help build a credit history and in case of an emergency. Students who need four cards are either finding themselves in far too many emergency situations, or are harming themselves by charging too many purchases. Be skeptical of reward cards. In theory, reward cards are excellent. The more a consumer purchases, the more reward points they accrue. Those reward points can then be used toward a host of things, including airline miles. However, college kids typically do not make much money, and reward cards are really only beneficial to people who charge a lot of their purchases. Such people can typically afford to do so, whereas the average college student cannot. Reward cards are better suited for men and women with full-time jobs and are not ideal for college kids without steady streams of income. Don’t be late. If payments are not made online, they should be mailed at least a week in advance of the due date. A history of late payments can quickly mar a credit report. Even if only the minimum payment is possible, make sure that payment is made on time. Borrow from Mom and Dad, not the credit card company. Credit card companies will lend cash to their customers. These loans are called cash advances. But unlike borrowing from Mom and Dad, accepting a cash advance from a credit card company typically comes with a heavy interest rate, making it much more worthwhile to call home instead of taking a cash advance. Getting a credit card is an important step for young people. Students should just be careful the credit card ends up building a solid credit foundation instead of digging a significant financial hole. First-day-of-school jitters (continued from previous page) more enjoyable aspects of school, such as seeing friends, participating in extracurricular activities, and even the change of scenery school provides. Mention the things your child may expect. Hearing about school frequently can reduce feelings of anxiety. Visit the school. If this is the student’s first time entering this school, take advantage of orientation days for new students or schedule an individual visit to the school. A tour and a meeting with the principal will also assuage some fears of the unknown. This can also calm any apprehension parents may have, because they will also know the layout of the school, its policies, and who will be watching over their children. Don’t be nervous. Children often look to their parents for guidelines on how to behave. A parent who is overly nervous or sad about the first day of school could make their kids nervous, too. Put on a brave face and keep any anxiety hidden until kids have left for school. Be prepared. Gather supplies, practice the driving route, lay out clothes, make lunch the night before, get a good night’s rest, and set the alarm clock. Knowing all of the controllable factors are handled can ease the minds of parents and students. Stay positive. Always keep conversations about school geared toward the positive. If children mention things that frighten them, calm those fears and show the upside to attending school. Provide examples of your own school experiences and how everything turned out for the best. The first day of school can be a time of uncertainty for students and parents. Adults are facing a new stage in their lives, and children are awaiting a classroom of new faces and requirements. Preparing for the first day can alleviate some of the anxiety about heading off to school.