What are the Benefits of Student Credit Cards?

As a parent, you may have some concerns about your child’s going to college. Aside from the emotional stress of being away from your child, financial matters can also pose a big challenge. In this article, we’ll be talking about how you can financially prepare your child for college with the help of a student credit card.

The Advantages of Student Credit Cards

One of the advantages about getting a student credit card for your child is that they can be a big help when financial emergencies arise. If your child lives on a boarding school or in a home away from yours, a student credit card gives him the chance them make purchases or make payments even without cash in their hands.

Another great benefit from student credit cards is that it enables college students or young people to start building their credit history as early as possible. Once a student graduates from college, it would be more difficult to apply for a credit card or get approved for new accounts without credit history. Thus, while still in school, this is the only time that your child can get a credit card without any difficulty in getting approved.

Why is it important to establish credit history during college years? Upon graduation, your child would be ready to face the adult the world. This would be the time to find employment, move to an apartment, get a car, and practice independence. With this in mind, having a credit history is indeed, indispensable.

It is no secret that aside from lenders, employers and landlords also look into a person’s credit report when hiring an employee or accepting a tenant. Although it is possible to find work or find a landlord without credit, experiences show that all these tasks become easier and less complicated when one has excellent credit.

Having a student credit card also teaches students to manage their finances effectively and face up to their financial obligations. By applying correct financial management principles at a young age, college students become more independent, responsible and prepared.

Parents Play An Important Role

However, you may ask, isn’t it true that some students got into serious debt problems before they graduated from college because of uncontrolled credit card use? Isn’t it true that some students even had to file for bankruptcy because of huge credit card debt?

Sadly, some students were not able to take control of their credit cards. But the risk of credit card debt can be avoided if a student is taught how credit cards work and how to use them to their advantage. As parents, make sure that your children understands these principles before they sign up for a credit card for the first time.

The privileges that student credit cards provide must not be abused. As a parent, you play a big role in how your child makes use of his student credit card. At an early age, train up your children to understand the value of money. Let them realize that credit cards are not tickets to extravagance. Using credit cards is indeed easy and convenient, but along with this convenience, there is the responsibility of paying back your debts on time.

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.
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1 comment for “What are the Benefits of Student Credit Cards?

  1. Ruben
    September 16, 2008 at 5:39 pm

    Hi I liked your posting in regards to Student credit cards. These cards are very beneficial and you pointed out the benefits rather well.These are great when the student handles the cards in a responsible manner. I found the site goapplycreditcards.net very helpful in deciding which card is best for my kids.

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