The Benefits of Canadian Secured Credit Cards for Students

I remember getting my first credit card back in 1982-ish. I started a new job and was anxious to get my credit started. I wanted the feeling of having a piece of credit with the banks. I knew that if a bank gave me credit, that was a good step.

The only problem was that I was living on my own and didn't have anybody to co-sign for me. I didn't want to ask my mother as that was not cool. They didn't have secured credit cards back then. So I had to find someone to co-sign for me.

Not knowing who to ask, I decided to ask my employer if he would co-sign. He gladly did it for me and I then received my very first credit card. I would never forget that day.

For a while after I received my first credit card, I would spend about $25.00 a month just to see what my credit card bill would say. After that I would pay it of quickly since I hated owing money. As I grew more confident with my spending habit, I found that this help me in my own business when it came to managing larger sums of money.

1) University / College Students have no credit rating - I started out just like any other student starting off. We do not have any credit rating with either TransUnion or Equifax. Therefore, we need to get a co-signer for an unsecured credit card or put up some money for an secured credit card.

2) They want independence from parents - Like myself, students want their independence. They want to feel like they can handle themselves away from home. This gives them a sense of well being in that they are able to manage themselves away from their family of origin.

3) They need an affordable credit card - For a small deposit (sometimes as little as $75.00), a student who is working part time is able to get a secured credit card. Being able to do this, jump starts their credit history.

4) It helps them learn to manage money and credit - How to manage money is something that each student needs to learn, especially when they just starting out in life. Having a credit card and being reponsible for making payments on time is one way. This establishes a habit for others bills, such as, gas bill, phone bill, mortgage bill, etc.

A reasonably priced credit card, starting a credit rating, and the responsibility of making payments to keep their credit in good standing is what a secured credit card allows the student.

By: Monty Loree

University Students often have a difficult time getting credit as their credit score is not yet developed. One of the best ways to commence a credit score is to get a Canadian Secured Credit Card. Visit www.canadian-money-advisor.ca for more info.

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