How College Students Can Build Credit and Get a Free Lunch

Many credit card companies will team up with restaurants, pizzerias, sandwich shops, etc. around college campuses to offer students a free lunch for signing up for their credit card. These credit card offers are advertised as no obligation cards – meaning that a student can sign up for the card but has the option to not activate it. A free lunch and no obligation? Sounds great! Well, students should know by the time they get to college that There Is No Such Thing as Free Lunch!Every time you apply for new credit, a creditor will pull an inquiry to view your borrowing status, or credit score. Believe it or not, this will negatively affect your score for one year. It is one of businesses’ Catch-22s. In order to build credit and increase your score, you need to apply. However, applying for new credit will decrease your score a few points. As is the case with many financial endeavors, sometimes you must spend a little to get a lot. Compared to the other delinquencies that can hurt your credit score, an inquiry is a very minor blow and new credit will boost your score in the long run.Some of these credit card offers can really help a student start building credit. So if you want that “free lunch” and a credit card too, then go for it. But be sure this is the type of card that you want. Ask your parents or research on what types of APRs, benefits or payment plans would be good for you.If you start building good credit now, this “free lunch” will be the first of many. A good credit score can save you thousands of dollars in interest for when you apply for car, mortgage, or any other type of loans. My intention with this article is not to scare you away from these offers, but rather for you to use them to your benefit and not to continuously apply for cards that you will not use just to save those seven dollars on a pizza. To learn more about how you can help increase your credit score, go to Financial Solution Services' website at FSSb2b.com where you can find more great information on credit improvement. And, you are cordially invited to sign up for a FREE webinar by visiting UpcomingWebinars.