Credit Cards for College Students: Good Idea or No?
More college students than ever before are applying for at least one credit card. There are several reasons for this. First off, credit card companies are marketing to this group because they know that they can garner a lot of business. To go along with this, credit card companies are also well aware that these students will eventually graduate, secure a job, and in turn use their credit even more. Secondly, college students who are strapped for cash have found it easier to get by with the help of a credit card.
Of course, there are pros and cons of a college student having access to a credit card.
On the beneficial side of things, this is a great tool for buying school related expenses. For instance, you can put books, school supplies, and other expenses on a credit card in order to make the buying process less stressful and more manageable.
Another benefit of a credit card is that it is great for emergencies. Are you worried about your child’s car breaking down and them not having a way to get it fixed? If so, a credit card that is to be used for emergencies only is a great idea.
On the downside, you can get into a lot of financial trouble with a credit card. Once you receive your card and are aware of your limit, it pretty much means that you can go on a shopping spree. Should you do this? Of course not. But many college students, especially those who do not have other money, tend to splurge when they have access to a line of credit. When this money is not paid off in full, interest charges will begin to accrue. And in most cases, credit cards for college students carry a high interest rate.
There are pros and cons of college students having access to a credit card. If you are thinking about this for yourself or a child, make sure that you consider both the benefits and drawbacks.
