One of the major problems that college students deal with daily is credit card offers. Credit card companies try to get students trapped financially before they have decent employment, so students and credit cards generally don't mix well. Creditors know that most college students are struggling financially and need cash. Creditors also know that students generally have little knowledge on managing their personal finances and can easily be trapped financially by credit cards.

Generally, young people are not matured or self-controlled enough, and believe it will be easy to pay the money back. College students may believe that maintaining good credit takes little effort, and may not realize the important of maintaining good credit. There is a tremendous need to educate and train students in the area of finances. Unfortunately, without training, college students can be horrible at managing money.

Managing finances isn't enjoyable. Managing money and maintaining good credit takes time and discipline. Managing personal finances is about long-term results. The average college student just wants to graduate college and hopefully find a well paying job. However, many college students are not aware of the importance of managing their finances and maintaining good credit. It is a fact, that how they manage or mismanage their money in college, can impact their future long after they graduate college. Bad credit can be hard to correct, and many college students need the cash and think little of the possible repercussions.

• How bad credit can affect students
• Denied future credit cards and loans
• Will pay higher interest rates
• Deposits required for utilities, phone or cell phone if approved
• Denied insurance or pay higher premiums
• Denied employment

Everything you do regarding credit will go on your life-report called an annual credit report.

Credit agencies keep the following information on you:

• Where you applied for credit
• When you applied for credit
• Who you owe
• How much you owe
• Payment amounts
• If your bills are paid late

I know sometimes young people do not think or consider the consequences of their actions. With credit you must, because bad credit can haunt a student for years down the line. Struggling financially and need cash quick? Don't turn to credit cards. Even if you get credit in your teens, if you do not pay your bills, the bad mark will follow you. It is not tracked only by your name; it is tracked by your social security number.

What you can do as a student:

Only have one credit card for emergencies and pay the bill in full each month. Make sure your credit report is error free. Review your credit report yearly. You can get a free credit report at www.annualcreditreport.com. As a student, make sure you track your spending, live on a budget, and try to not use credit cards. Good management of personal finances will pay off in the future. 

Sharman Lawson is a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever! Visit her website at www.sharmanlawson.com.