The College Students Guide To Using Credit Cards Wisely

We have already discussed the benefits of owning a credit card for students as well as the factors to consider when choosing student credit cards. But apart from the advantages of college student credit cards, let us also consider the dangers associated with the misuse of credit cards.

Use Credit Card for Students Wisely

Parents and guardians play a big role in helping young people become aware and understanding the dangers of using credit cards. Hopefully, by being aware of the risks, these young people can avoid the pitfalls that lead to bad credit and high credit card debt. If you’re a parent or a guardian, here is how you can play your part.

Teach students to watch out for the wrong credit cards. With so many student credit cards offered in the market, students need to be very particular and careful about which credit card they choose. Let them be aware that some advertisements may be just propagandas meant to trick consumers into believing that a credit card is worth owning. Remind them that not all credit cards are the same and some may even take advantage of their inexperience.

Give your personal advice. You can give valuable pointers about how to handle credit cards more effectively and which credit card issuers are worth checking out. If you’ve been using credit cards for a long time, you may also share your own personal experience in how you handle your account and how you stay away from credit card debt. If you have encountered a problem with credit card debt however, don’t hesitate to share it as well. Students can learn a lot if they hear an actual account from someone they personally know.

Teach them about interest rates. Even as kids, you can already teach them about interest rates & fees so they can understand that this also a money-making business and credit card companies are also after making profit. This is why consumers have to be more responsible in the choosing.

Teach them about credit card terminologies. Young people should also be aware of the terminologies or factors that are involved with credit cards. For instance, let them understand about APR, penalty fees, credit limit, grace period, due date of payment and other factors that they need to know about credit card. As they become familiar about these terms, they’ll already know what things to look for when it’s time for them to get their own credit card.

Teach them about the importance of building up their credit history. Another important thing that young people must learn about student credit cards is how it plays a big role in building up their credit. Make sure that your kids understand that how they manage their credit card account directly affects the status of their credit. For instance, they need to know that failing to keep up with their payments and exceeding their credit limit damages their credit. Let them understand the importance of having an excellent credit status and how it can open doors of opportunities for them.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009
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1 comment for “The College Students Guide To Using Credit Cards Wisely

  1. August 26, 2008 at 12:23 am

    These are some pretty good tips that students should keep in mind when they want to avail the services of a credit card company.

    Another helpful tip that college students is that If you pay less than the total amount due, you will be charged interest on your next bill. Even though the credit card company holds you in higher esteem than one of your high school peers who didn’t go on to college, they still regard you as a rather risky proposition – which means you’ll probably be paying a very high interest rate. If you only pay the minimum due on a card with a high interest rate, it could take you several years to pay off even a modest amount of debt.

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