Student Credit Cards: I'm Shocked! (cont.)
Contributed by Caryn e Zent
Student Credit Cards Don't Prepare You
Making payments on your student card may not prepare you for insurance costs. You're young, you're cute, and your car insurance costs a fortune! Since you are a graduate, your parents may no longer be paying for your car insurance and can no longer cover you on their health insurance. Even if you paid for your car insurance before, you would have had a reduced rate from being on your parents' insurance policy. Graduation may result in moving to a metropolitan area, which also causes rate hikes.
Your poor spending habits in college can add up to higher car insurance rates, because yes, the insurance companies run your credit too. If you have the money and credit to buy that expensive car, factor in the insurance. If you get a good job, chances are you will have some type of health insurance. But as health insurance costs are rising by the year, you may be in for a shock at how much premiums, deductibles, and co-payments can cost. You also need to think about renter's insurance.
What Does It All Mean?
Responsibility is key. If you learn to be responsible with your finances in college, it will definitely pay off down the road and make for a less shocking graduation.
