When you get your first credit card, it can be tempting to spend money on items that you don’t need. The allure of the latest smartphone or a trendy pair of shoes may be hard to resist. Yet, you should have a valid reason for each purchase made with your card. Whether you’re still considering applying for a credit card or you just received your first shiny piece of plastic, here are five purchases you should use your student credit card for.
1. Gas
For many college students, purchasing gas is a regular weekly or biweekly event. Using your student card to buy gas is convenient and allows you to practice using your credit card responsibly. At the end of the month, you can easily pay off the outstanding balance with a single payment. Consistently paying your bills on time shows your credit card issuer that you are capable of responsibly handling your credit, which in turn can help boost your credit score.
Thankfully, using your credit card can also be safer than using a debit card. Gas stations are common targets for card theft using credit card skimmers, which are small electronic devices used by thieves to steal card details. If your information happens to be stolen, credit cards typically offer better fraud protection than debit cards. Plus, you won’t be held liable for any purchases you didn’t make.
"Helps build my credit in a safe and efficient way. Also, allows me to buy groceries and gas, then immediately pay it off, so I don't lose money." - Hannah, 1FBUSA cardholder from TX
“This month I used my credit card to buy gas to get to my community college. It has been super helpful to have such a low credit limit, but still build my credit score!”- Kaylee, 1FBUSA cardholder from IL
2. Groceries
Just like filling up a gas tank, students need to regularly fuel their bodies with nutritious foods. Preparing meals at home, especially if you live off-campus, is often a healthier choice than eating at the dining hall or a fast food restaurant. Plus, there are plenty of ways to save money while grocery shopping that can make cooking at home even more cost effective.
Using your student credit card at the grocery store can make the checkout process as easy as the swipe (or tap) of a card. If you create a monthly budget for your grocery expenses, you can help reduce overspending and keep your credit utilization low. Finally, choosing shelf-stable foods and versatile ingredients can help students spend less money on food in college.
"I am thankful to have this credit card. I needed my card for college to cover minimal gas and some light groceries. Thank you to 1st Financial Bank for trusting me and helping me get a head start on my future! I recommend using 1st Financial Bank to all college students!" - Tony, 1FBUSA cardholder from IL
“I was running low on cash after buying books for school and I needed a couple of groceries. 1st Financial Bank bridged the gap while allowing me to build my credit history.” - Patrick, 1FBUSA cardholder from KY
3. College textbooks & supplies
At the beginning of each semester, your professors will announce the recommended textbooks and supplies for each class. Since textbooks are expensive and not all the books will be required, it’s a good idea to wait until you’re sure you’ll need them to make the purchase. Consider using your student credit card to order your items online instead of carrying a large sum of cash to the college bookstore.
You should always do your best to allocate room in your budget for classroom materials. However, textbook costs can often be more than expected, or their prices can change at the last minute, making it difficult to budget an exact amount. A student credit card can help you bridge the gap between what you saved up and what you had to pay, all while helping you build credit with your card.
“I used my credit card this month to help pay for textbooks. By having a credit card, I can pay back the bill for my credit cards over a period of time (the first semester). This took a lot of stress off of my shoulders, as college is stressful within itself!”- Kya, 1FBUSA cardholder from WI
“I was able to pay for my college textbooks before my financial aid was posted to my account. It was very helpful and made my summer semester enrollment less stressful.” - Dylan 1FBUSA cardholder from NV
4. Transportation
Having a credit card in college can be beneficial when the need for a quick or unexpected trip home arises, such as if a loved one falls ill or you forget an important document. If you are in between paychecks and need transportation, using your student credit card or a rewards credit card can be a lifesaver when it comes to paying for airfare, bus tickets, gas, or other travel expenses.
Because student credit cards are designed to help you if you get into a pinch, they can also come in handy when maintaining your personal vehicle. You can use your credit card to help pay for any emergency repairs or maintenance needed on your car. It’s important to recognize that transportation expenses can be costly, so you’ll want to keep an eye on your credit limit and avoid credit card debt.
“I was able to pay a campus parking ticket before the due date and avoid fees and penalties! Without my 1st Financial Bank credit card, I would have been stressed out and worrying about how I was going to pay this on time! It saved me big time!” - Tyler, 1FBUSA cardholder from MD
“It helped me fix my tire when it went flat and I was stranded on the side of the road trying to get back home.” - Xena, 1FBUSA cardholder from OK
5. Hotels
If you’re involved in clubs or organizations on campus, chances are that you may have to travel and stay overnight for an event at some point in your college career. Most hotels require that guests reserve rooms with a credit or debit card. It is also required that guests provide a credit card for incidentals.
While your credit limit may be high enough to afford an extravagant hotel, always consider affordable options first. If you pay for a hotel with your credit card, try to pay your balance in full before the due date instead of making only the minimum payment. This way you won’t have to pay interest on your remaining balance, and you’ll still be building your credit in college with a positive payment history.
"This month, I had a trip out of town, far away from home. The night coming back, it was around midnight, and one of my tires blew out. Thankfully I had my credit card and was able to pay for an extra night in the nearest hotel. Very glad I had received the card the week I left!" - Anonymous
“I'm traveling a lot this summer so the credit increase will be nice for making any reservations and emergencies. Thank you!” - Bethany, 1FBUSA cardholder from TX
Credit cards are an excellent way for you to practice better money habits or earn rewards. But before you complete any credit card applications, make sure you understand how credit cards work and the different credit terminology, like interest rates, grace periods, and annual fees. A good way to start using your student credit card is to only buy essential items, like gas and groceries; that way you’ll avoid overspending.
When paying with credit, the money you charge to your credit card takes a while to be subtracted from your account, making it crucial to budget your expenses properly. Try your best to keep your credit limit in mind and avoid frivolous purchases that may lead to a poor credit report. At the end of the day, your goal should be to have enough money in your bank account to cover your full credit card balance and to make your payments on time.
