Credit wise tips for college students

College students may be pretty handy when it comes to researching term papers, calculating algebraic equations, and arguing the pros and cons of capitalism. But they're not so handy when it comes to managing credit.

"Many students would get an 'F' if they were graded on their management of credit cards and bank accounts," said Kim Womack, director of education for Consumer Credit Counseling Service of South Texas. "This is an area where they can definitely use some extra credit."

Half of card-carrying students pay late fees and 7 percent have had a card cancelled, declares the California Public Interest Research Group. College students are not much better with checkbooks, according to a Quicken study, with half bouncing checks.

If you are a college student or the parent of a college student, here are some helpful, credit-wise tips from CCCS of South Texas. CCCS is a non-profit community service organization that offers credit and budget counseling and education.

Learn credit card terms. You are going to have a hard time shopping for a credit card if you are not familiar with grace periods, annual fees, annual percentage rates and other credit card terms. You can read up on these terms at Web sites like www.bankrate.com and www.cardweb.com. While you are there, you can also check out a listing of the credit cards with the lowest rates. FYI! Insist on a grace period of at least 25 days, an interest rate that is equal to or below the national average of 17 percent and no annual fee.

Calculate the cost of credit. Credit may be convenient but it isn't free. For example charge $1,000 on a credit card with an annual percentage rate of 17 percent and make a minimum payment of $25 or 2.5 percent, and you will pay $979 in interest.

Develop a spending plan. Track your expenses during your first semester to see where your money goes and where you may want to cut back. Use this information to develop a written spending plan and stick to it. Pay with cash first, and, if you have to use credit, have a plan to pay off your balance within 90 days.

Be leery of too good to be true deals. A free tee shirt is no bargain if you have to sign up for a $25-a-year credit card to get it. Always read the fine print because there is no free lunch.

Exercise restraint. You shouldn't feel obligated to use your credit just because you have it. Stick with your spending plan and save for special events like spring break.

Protect yourself from credit fraud. Be careful with your credit card number. Shred receipts, outdated bills, and pre-approved credit card offers you don't need. Keep your credit cards in a secure place, and never let others use your cards, as you will be responsible for any charges made.

Follow these tips and you will build a good credit history and have plenty of credit for those times when you need it. For help with money management or budgeting, contact CCCS of South Texas. CCCS is a nonprofit, community service organization that provides confidential counseling, guidance, debt management, and education programs to financially troubled consumers. The agency is also a member of the National Foundation for Credit Counseling. To schedule an appointment, call 800-333-HELP or submit a counseling form online at www.cccsstx.org