Student credit cards are specially designed to introduce beginning college students into a new and mysterious world of credit cards. These plastics come with reasonable interest rates and attractive rewards programs matching young people's interests. Properly used, student credit cards will give you a head start on building credit. However, young spenders can get into financial trouble because they don't have sufficient money management skills and experience. Our article will tell you how to spend wisely with your student credit card and build positive credit score that will serve you for years to come.

Using a student credit card, you spend money in a way that will benefit you down the road as opposed to spending cash, which does you no good in the long run except to keep you out of debt. With plastic money you can establish and build credit history that will help you qualify for a low rate car loan or home mortgage, receive a good job offer and lend an apartment. Just make sure that you use your student credit card in the most appropriate and responsible manner. We will tell you Top 5 common mistakes that you need to avoid:

Abusing credit limit. It is known that young people tend to max out their credit limits more than older adults. They pay less attention to the price of goods because credit cards give them more purchasing power. Don't behave like a kid in a candy store! It is easy to spend all money on pizzas and music downloads. However, college students don't make a lot on their job to cover large balances. If you don't want to spend years paying off your credit card debts, control your expenses and don't charge more than you can afford.

Making late payments. If you want to build good credit, make certain that all payments are made in a timely manner. Late or missed payments will hang around on your credit report for up to seven years. It will have a negative impact on your credit history and hamper your successful financial future.

Not having a budget. Budget planning can seem boring and tiresome routine. However, it is a fabulous way to avoid frivolous purchases and make most of your money. Budget planning reflects spending priorities - what you can afford now and what you can't afford. Consider using personal finance software to make the task easy.

Opening multiple new accounts. College students are constantly bombarded with credit card offers. Banks are becoming more creative and persistent in their efforts to snag new customers. They offer attractive gifts like T-shirts, Frisbees, pizzas and even iPods just for filling out a credit card application. Regardless of the gift boxes, resist the temptation to apply for numerous student credit cards quickly. A lot of recent credit inquiries will hurt your credit score.

Not checking your credit report. Identity theft is a significant problem in the 21st century. Therefore, monitoring your credit report becomes doubly important. It will help you track unauthorized activity or new accounts opened under your name. You can get a free copy of your credit report from each of the three major credit bureaus on an annual basis.