November 22, 2008
College Student Credit Cards
By Student Credit Finance
Student credit cards and college students should go hand in hand. Why? Because they need to start somewhere. One way of building a young person’s credit history is by obtaining a college student credit card. A young person has to start some where in building there credit for the future, what better way than to apply and receive a college student credit card.
As parents, it really is our responsibility to see to our children’s education in certain matters. One of those matters in my opinion is credit. Typically, this is not a subject they will be able to take in high school so it really is up to us to teach them. Starting with student credit cards is smart in many different ways. For instance, obtaining a college student credit card verses a regular credit card you probably have in your wallet is much easier.
The credit card companies are going to make it easier because they know, first of all, the student is just starting out in the world and probably does not have any or very little credit history. Second, they also realize they are going to school and there income is going to be very minimal. The guidelines for a regular credit card are credit history (good), and a minimal monthly salary. With a college student credit card they look at your credit but generally will not deny you because you have very little or none. They want to get the college students that are just starting out because they can become a very loyal client.
When you give someone a chance in anything and they become successful, the chances are they will be very loyal to you. For this reason, college students are specifically targeted. However, it is up to the parent at this point to teach them how to deal with this type of credit and debt. With no experience at all it could be very costly for the student. Encourage and teach your child the rights and wrongs of financial situations. It will help them all through there lives and only enhance it.
What you need to teach them is how and when to use the credit card. Keeping it as an emergency is a good rule of thumb. You also need to make sure they understand the importance of paying there bill every month on time. This is what will build there credit history in a good way. If you do not pay every month and you are never on time you are just going to build a poor credit history. That is not going to get them the new car or the house they want to by for there family down the road, it will only make it more difficult for them.
They also need to understand that paying the card off rather than just the minimum payment will also be a plus for them. If they just make a minimum payment every month they will be making that payment for years and never pay it off. Look at the interest they are paying. These are just a few general rules someone starting to deal in credit should understand. Helping your child out in these matters is a great start for both of you.
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