More about Student Credit Cards…
Student credit card offers and marketing have changed drastically over the past couple of years after legislation took effect that regulated some of the previous practices. Some of the changes required that applicants be evaluated on their own ability to pay their bill and also restricted banks from giving away freebies to student who fill out credit card applications on or near college campuses.
Credit cards for college students can provide a wonderful learning experience. They can also be a total disaster, leaving students with bad credit records that could haunt them years after graduation and strap them with debt. A little preparation can make all the difference.
Even before arriving at their dorms for freshman year, college students were inundated with offers for credit cards. Most of these offers are quite legitimate, since it is in the credit companies' interest to get people committed to their services while young, in hopes that they will stay with them. Disaster can happen when students accept a card or multiple cards, use them without restraint, and then discover the nightmare of compound interest.
Learning to manage credit can be the difference between a positive experience or one with long-lasting negative effects. Having one card and using it wisely has its benefits. It provides security in case of an emergency situation and can be the first step to financial maturity. Using a credit card wisely can also help establish a good credit history, which is important for years to come. To achieve the positive experience, students should review card offers and select a card with good terms, use it carefully, and pay off purchases promptly.
CreditSoup.com can't keep your student from buying pizza for the whole dorm, but we can help them locate some great credit card options. After that, it's up to you to stay in communication with your student and help them manage their credit wisely.