The plastic card swiped, and the machine clicked and demanded a signature. Michele Fusco autographed the beige glowing screen and walked out of the store with groceries in hand.
Fusco, a UF freshman studying Spanish and political science, uses her credit card only on gas, groceries and emergencies, and has only been late for one payment. Regardless of the seemingly good record, Fusco's credit score is low, and she's worried.
"I'm going to keep working to bring it up this summer, but sometimes it's hard because I'm responsible for paying the bill each month and paying it on time," she said.
Fusco isn't alone. According to the Gallup and Sallie Mae study "How America Pays For College 2010," a little more than two in five college students have a credit card, and 64 percent of those students pay their own credit card bills.
While getting a credit card in college is how some students start establishing their financial habits and credit scores, some experts say it's not tough to fall victim to the easy access to money and fall into debt, causing credit scores, which last long after graduation, to tumble.
Arnold A. Heggestad, former professor of finance and entrepreneurship at UF, said he's seen this happen to more than a few students.
"I just helped a student who was in medical school qualify for buying a house. She now has more than enough income to qualify but her credit score is making her ineligible," Heggestad said.
And because of the U.S.'s current financial crisis, he advised students to be cautious with credit.
"If I were a student, I would pay down my credit cards and live on cash," he said. "That is the only way to be eligible for credit later when you really need it."
SunTrust Bank Branch Manager and Assistant Vice President Steven Cabrera disagreed. Cabrera said that if a student continues to just pay the minimum on their credit card, he or she would end up paying a fortune in interest.
So how can you graduate with a good credit score without paying a fortune in interest and fees?
"Don't abuse your card," Cabrera said. "Use it wisely. Make small monthly purchases that you can pay off."
Cabrera said doing this will begin to establish your credit history. The more purchases you make that you pay off, the better shape your credit score will be in, so long as you pay off all of your monthly purchases on time.
"You get a little tick mark every time you're late on a payment," Cabrera said. "It may start off small, but those ticks add up when it comes time to take out a loan to buy things like a house or a car."
He also stressed the importance of longevity. It's better to use one card for all your needs instead of changing cards every few months. This shows banks you're committed to paying them back, and it tells them you'll be more likely to stay with them for the long-run.
Cabrera's last tip found common ground with former professor Heggestad: Students need to be disciplined when it comes to saving and using their credit cards responsibly. This may mean skipping out on a fun concert or buying the knock-offs instead of designer labels.
"This is not fun now, but the discipline will make you so much better off in the future," Heggestad said. "Freedom from debt is like freedom from oppression: Freedom from debt means you can do anything you want when you graduate."
