Should College Students Apply For Credit Cards?

It was scary enough to think of them driving a car at sixteen. Now they are heading off to college. Most parents are not worried about their teenagers getting their hands on a credit card the plastic of choice for college students. But should they have credit cards in the first place?

Children tend to do the opposite of whatever it may be that their parents suggest they do. When it comes to parents advice on credit cards, this rule definitely applies.

College students are the fastest growing untapped market. They are not fully adults but not children either. They represent millions of dollars in buying power. They qualify for loans to attend college and other financial aid.

Colleges regularly make arrangements with credit companies allowing them to hand out information on their offers to students. Although many of these credit cards feature an insignia from the college, they do not come with what students really need " a money management class. Many students are awarded high credit limits despite their lack of income.

Most college students are going to get their hands on a credit card one way or the other, so the question that really needs answering is who should give them the card. Parents can help their kids prevent financial problems by equipping them with a credit card themselves.

Parents have several options. They can simply add their childs name to an existing credit card account. They can also help their kids obtain a credit card that allows parents to track their childrens spending habits. Kids who have been taught to make good decisions about money throughout their life will be more prepared to resist the temptation to over spend with a credit card.

When monthly statements for the card arrive, parents should discuss the purchases made on the account with their child. This can be done in person or over the phone, if necessary. Children will feel more accountable if parents continue communicating with them about their credit card.

A debit card can be used instead of a credit card. They work the same way, but they draw off of funds in a checking account. Parents can make sure that their children are ready to use a credit card by putting a set amount of money into the debit cards account every month and seeing if their children are able to use the card responsibly.

It is very likely that parents of college students are more aware of just how important a good credit score is than their kids are. Parents can help their children be ready to handle a credit card responsibly by preparing them for the dangers that such cards also present.

By: William Blake

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