The pros and cons of student credit card

Students credit card ads are seen on campuses throughout the U.S., U.K, and other parts of the world. If you have watched the news lately, you may have seen that there are more students with credit cards today, and with credit card debt problems, then any other time in history. Credit cards can be a real lifesaver to the new college student, but can quickly turn into a nightmare if not used properly, or if you choose the wrong credit card for the student. Most credit card companies will offer student credit cards at a higher rate of interest then normal credit cards but the smart consumer can find a decent rate for student credit cards, or find alternate credit cards.

While student credit cards can be very beneficial to the student, especially in cases of emergencies, there are many risks inherent with trusting the college student with the responsibility of owning a credit card. Many college students today are coming out of college with bad credit already on their record. This is not a good way to start off a financially successful life. However, with a little foresight your college student can have this invaluable purchasing device while minimizing the risks of bad credit or overspending.

There are several ways to keep student credit cards safe, while still allowing the student the financial security that credit cards offer in emergencies and in a pinch. You should discuss with your student the issues involved with owning a credit card and make it clear that the credit card should only be used in emergencies and cash is the preferable paying method most of the time. You should also look into possibly getting a secured credit card, which means that the spending limit on the credit card would only be as much as you (or the student) deposits, this would prevent the student from going overboard or splurge spending. There are many other options open for student credit cards, such as setting a lower spending limit or using a shared credit card to keep a closer eye on the students spending.

As long as you take the proper precautions, do your homework and make sure your son/daughter understand all of the implications of owning a credit card, you will find that the pros of owning student credit cards far outweigh any cons, for convenience and for peace of mind.