Understanding Benefits And Dangers Of A Student Credit Card

by : Tom Tessin

The very idea of having a credit card yourself is enough a reason for sending shivers up you spine, let alone the thought of handing one over to your new college going son or daughter! You must have heard a lot from one group stating how beneficial having a credit card might prove to you and another group discouraging you to avail a credit card and stating its evils. The world of credit cards is undoubtedly filled with several hearsays and, to be honest, several may turn true. However, you can reap only the benefits of a credit card if you are equipped with the knowledge of how a credit card can harm your finance, by checking them at the very grass root level.

This becomes even more difficult while you are trying to decide on or not to give your ward a credit card guardian, and if yes, which one should be the best suited. Whichever you take and whatever you intend to do with your credit card, make sure you keep certain very crucial aspects in mind regarding the management of your credit card, especially when it concerns a new college goer. Know and understand the various benefits and dangers of student credit cards and the ways you can use it judiciously, in order to avoid any bad credit reputation, various hassles aside.

Being a high school or a college student is not easy. Especially with the increasing pace of extra curricular activities and various fees for additional curricular support needs a lot of resource for your behalf as well as your child's behalf. These are only obvious for any student's growth and for the successful completion of studies. Moreover, you cannot prepare yourself beforehand for these little expenses. Here the validity of having a credit card for students is nothing less than obvious. If your daughter or son has a credit card, these last minute problems will cease to be problems altogether.

You will also receive a statement for credit card, with which you will be able to assess the expenditure of your ward and check for yourself for what and when your ward is spending money. This is only possible with plastic and not otherwise. The plastic will also help you teach your daughter or son that there is nothing called free money, and that the money they spend needs to be repaid.

There will be many a companies offering you a student credit card for your ward. Their interest rates are likely to be higher than what your credit card claims. Do not be alarmed, but be assured that the card issuer is undertaking huge risks at allowing your ward hold plastic money. Besides the issuer's risk, it also involves you. Be very vocal and clear about explaining what the card is for to your ward. Explicate to them what they should do with the card and what not, or it will be you who will have to suffer for the previous night's hangout, which your son or daughter had financed.

Make them learn to save money and keep the card reserve for emergency uses. Teach them to pay their bills regularly and acquaint them with how the credit industry works, all about bad credit histories and how these can harm them in the future. Judicious use of credit cards is always recommendable. Provided the same, a student credit card is no lee than a blessing in plastic form. Manage your money well and teach your son or daughter money values. Remember, education does not cease at college - it is way beyond!