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Before you apply for a credit card, it is important to understand the pros and cons so you can decide what is right for you. While debit cards appear to be the better option as you never incur debt, having a good credit score will allow you to more easily access loans in the future when you want to buy a car or a house.

Even if you already own a credit card, here are some tips getting and using your credit card mindfully:

• Understand your credit score: Your is a three-digit number that is built from your credit history. It shows how well you manage credit and how risky it would be for a lender to lend you money. See our tips below on how to build a strong credit score.
• Shop around: The to help with the process of selecting a credit card. Try to limit the number of cards you apply for at once, as having multiple credit card applications on your credit report in a short time can negatively affect your credit score. It is generally recommended to leave six months between applications if possible.
• Evaluate rewards: Rewards programs can be enticing, but it is important to consider if the reward is useful and valuable enough to outweigh other aspects of the card, like increased interest rates or annual fees. Be sure to fully understand what the reward is worth and any potential special terms and conditions.
• Determine interest rates: While it is ideal for you to pay your outstanding balance in full each month, it is important to understand the cost associated if you are unable to. To learn how to reduce the amount of interest you will pay, check out this to compare and contrast alternative payment options.
• Check your balance frequently: Keeping track of your expenses throughout the month will help ensure that you have the funds available when it's time to pay your bill. This will also help you catch any suspicious activity that could be signs of fraud.

Having a strong credit score represents your ability to manage your money wisely, and this can impact you in a number of situations, such as qualifying for a lower interest rate on loans. The best thing you can do is to keep your credit score as high as possible, and there are a number of ways you can do that:

• Pay on time, every time: Paying your bills by the deadline has the greatest effect on your credit score, so make sure you make your payments on time by setting reminders or automatic payments.
• Keep your credit utilization low: Credit utilization is the amount of credit you're using compared to your total available credit. As a general rule, try to keep your credit card balance below 30% of your credit limit. For example, if your credit limit is $1,000, don't let your balance go over $300. If you have to make a large purchase, try to make payments on your credit card before your statement is generated, to keep your reported balance low.
• Credit history length: The sooner you start building a credit history, the better. The average age of all your credit accounts is a key part of this calculation. Closing an old credit card, even if you don't use it much, can lower your average account age and negatively impact your score.
• Be mindful of "hard" inquiries: A "hard inquiry" is a check on your credit report that occurs when you apply for new credit, such as a credit card or a loan. Each hard inquiry can lower your score so avoid applying for multiple new credit cards or loans in a short period of time.

Managing debt is a difficult task for many students, but staying on top of your expenses can help reduce the stress. This may be the first time you've had to balance your debt and daily expenses. It's never too early to start thinking about building a healthy financial future, so here are a few tips on how to stay on top of your student debt after you graduate:

• Utilize your grace period: Many loans have a grace period after graduation before you are required to start making payments or before interest is accrued. Use this time to understand your loan terms and make a plan on how you will pay it off.
• Live consciously: Continuing the cost-saving lifestyle you had as a student for a few years to help pay off your loans faster.
• Make (or update) your budget: After graduation, you may have new expenses you are not used to. It is important to track your spending with to ensure you can put additional money toward your debt.
• Increase your income: If you find yourself needing more money, explore new ways to earn it. Check out some of our suggestions on our “Achieving A+ Finances” page.
• Start saving: After you have your student loans paid off, you can focus on allocating some of your paycheque to a savings account. It may seem early to through an or a , but the sooner you start, the less you need to save each month to meet your goals!

There are two main strategies for paying off debt that you have already accumulated, the Avalanche and Snowball methods. Which is better depends on your financial circumstances and personality.

• Avalanche Strategy: This method involves making minimum payments on all your outstanding accounts and using any extra money to pay off the bill with the highest interest rate. Using the debt avalanche method will save you the most in interest payments. The debt avalanche method can save money and time, but it does have its downsides and this method will not work as effectively if you lose motivation and drop it partway through.
• Snowball Strategy: This method involves paying off the smallest debts first and then moving to bigger ones. It is a strategy in which you essentially tackle the easiest jobs first.This method can encourage those who feel overwhelmed by numerous payments, since smaller debts will be paid off fairly quickly.

In terms of saving money, a debt avalanche is better because it saves you money in interest by targeting your highest-interest debt first. However, some people find the snowball method better because it can be more motivating to see a smaller debt paid off more quickly. The debt payment strategy that's right for you depends on your personal circumstances and preferences. Weighing the pros and cons of each can help you create a plan to get you out of debt and into a better credit score.