Senior Melissa warns to watch the little stuff. It is crucial to understand the difference between the balance of the account and the minimum payment on the statement. The balance is the total amount owed to the company. The minimum payment is only the smallest amount of money the company will accept as payment that month. Students must always make at least the minimum payment.
Many people believe the most responsible thing to do is to pay off the entire balance each month.
By paying the balance, students can avoid high interest rates and improve their credit rating. Most college students begin with a clean slate as far as credit history goes, but many are still puzzled by it. Everyone needs to know how credit history works. A good credit history will be a great asset after graduation, but a bad record can drag a student down quickly. The Philadelphia Inquirer explains what good credit can do for students.