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Money-Management Articles >> Credit Cards For College Students – Sensible Use
By Kim Stevens Credit cards for
college students can prove vital, especially when it comes to financial
emergencies. Parents aren’t always around to bail out their children and
by offering students a credit card it is possible to not only provide them
with security for these emergencies but also teach them about the sensible
use of credit cards and credit accounts in general. On the positive side,
student credit card limits are usually set quite low making it difficult
to run up masses of debt on one individual card but it is still possible
without careful management.
Why Students Need Credit Cards
Student credit cards are only financially crippling when they are used
incorrectly. In the case of students, running up bills on numerous student
credit cards can mean repaying the debt over the next ten years and
possibly even longer. However, as well as being ideal for use in
emergencies they also offer the opportunity to build a credit history,
without which it is virtually impossible to get a mortgage or other lines
of credit.
A Single Application For A Single Card
As a student, the most important aspect of managing your credit is not
getting carried away. This should start with your first application.
Credit cards for college students are just that; lenders will usually
accept your application with little fuss. You should not apply for
multiple student cards in the fear that your application won’t be
accepted. Select the most appropriate student credit card and then
complete your application. By all means, if that particular lender refuses
your application then apply for the next most suitable. There are plenty
of credit cards for college students available from different lenders.
Sensible Use Of Your Credit Card
Another temptation is to apply for more cards simply to have more credit
available. Don’t forget that a student credit card does not offer free
money and you will have to make the repayments on all money you borrow.
Bearing this in mind you should only use your credit card when you need
the credit it offers and when you know you will be able to make the
necessary repayment. The longer you borrow money without repaying the
capital, the more repayments you will have to make.
The Joint Application Card
Joint application student credit cards provide a monthly statement to the
student and to the parents. This enables parents to monitor the amount of
money that their children are spending and, if necessary, help to make the
necessary repayments. A joint application credit card is the best option
available because of this feature.
When possible try to use cash or your debit card in place of your credit
card. It may not seem too big a problem to buy a meal at the student union
on your credit card but if you keep using it in this way, the money soon
adds up to an uncontrollable figure. One final important factor to
remember is that a t-shirt or a hat is not a good incentive to apply for a
credit card. Always consider the application you make based on the merit
of the credit card itself. Look at the interest rates, the incentives and
any fees that may be associated with it and base your final decision on
these.
This article was added on: April 16, 2006.
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