The use of credit cards by students is at an all time high, and each year
more and more students and young people are signing up to use credit cards. The
alarming increase in these numbers has generated a lot of concern from various
sources about the easy availability of credit cards and the potential pitfalls
of irresponsible credit card use. But there is significant benefit that student
credit cards can offer, including the opportunity for young cardholders to learn
how to manage and build credit.
An alarming percentage of students and young people are already more than
$10,000 in credit card debt and to complicate things even further, many of these
students have yet to start earning a stable income. Financial responsibility is
something that has to be taught at home, but most parents do not have the time
nor the patience required to adequately guide their children about the vagaries
and responsibilities of using and managing credit wisely.
The cornerstone of proper personal financial planning is living well within
your means. But peer pressure plays a major role in a students life and, for
young people in particular, it is extremely difficult to ignore the latest
trends. Easy access to student credit cards is part of the problem for students
trying to establish and build credit, and it has become very difficult to avoid
credit card offers that allow students to complete a "brief" application form
and obtain a credit card in such a short amount of time.
But wise use of these credit cards can help those students who might
otherwise struggle to pay their college fees and meet their day to day expenses
as well as those who are just looking to get an early start on building their
credit. Credit card issuers have recognized the market opportunity and have been
offering increasingly competitive student credit card offers everyday.
Another distinct advantage of having a student credit card is that it helps
in starting the process of building a good credit history. Starting to build
credit early will go a long way for young people trying to establish a financial
track record prior to that first car or first home purchase.
A highly recommended alternative of an unsecured student credit card is a
debit or prepaid card with a credit limit. Money for purchases made on this card
is just deducted from existing funds deposited in the students account and when
the spending reaches the limit, the student simply is not allowed to make any
more purchases.
Before you decide to get a student credit card, you should pay special
attention to any fees, exclusions and restrictions that might limit the use of
the card. Also, lookout for the rewards they are offering and then compare the
overall costs that you have to bear. Also, dont forget to check for balance
transfer transaction fees, blackout dates on rewards offers or for any
restrictions or limitations which will fall under the terms and conditions.
For more on student credit card offers, Robert Alan recommends that you
visit CreditCardAssist.com
