Wednesday, September 13, 2006

BMO suggests that Students need a credit card and should choose wisely

Back to School: Choose your first credit card wisely

(NC)—If you're one of the many Canadians attending college or university this fall, be prepared to face a lot of choices throughout your academic year, one of which is likely to be selecting your first credit card. It may seem daunting at first, but the trick is to keep it simple.

"It's just a matter of understanding your own needs and finding the card that comes closest to meeting them," says Mike Kitchen, vice president, BMO Bank of Montreal Mosaik MasterCard. "Consider what you will be using your card for, how you plan on managing your finances and if you want to earn rewards for things such as travel, merchandise or entertainment."

According to a recent BMO Mosaik MasterCard Student Survey, 72 per cent of post-secondary students with a credit card will carry a balance, so for many of these cardholders, a low interest rate credit card will minimize their monthly costs. Students should be sure to identify cards that have a low annual interest rate, not just a low introductory rate.

The same survey shows that one in three students applied for a credit card because it was needed to make travel reservations. "Students who need to fly between home and school may want to consider a travel rewards credit card, like our Mosaik MasterCard," Kitchen suggests.

"When you're at school you need to do your homework – this applies to choosing and using a credit card too. If you invest the time to answer basic questions about what you want from a credit card, and understand your own responsibilities, you'll get a much better sense of how well a particular card meets your personal needs," says Kitchen.

- News Canada

Mark's comments:
I believe that a post secondary student should obtain at least one or two credit cards, for the reasons above, plus you want to start building your credit history as soon as you can to assist with obtaining credit in your early to mid 20's The longer that your credit history is on file, the better credit risk you will appear to have.

All the best!

For more information please contact A. Mark Argentino

A. Mark Argentino Associate Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS 905-828-3434
FAX 905-828-2829

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