A Look at Student Credit Cards

A Look at Student Credit Cards

When entering into college, a student could already feel somewhat overwhelmed by the amount of responsibility that is being placed on their shoulders. Most students discover rather quickly that most things in life are not simply handed to them. This is also true for obtaining a good credit score. To help a student build up his or her credit, there is the option of obtaining a student credit card. Though there are many benefits to obtaining a student credit card, there are also downsides. It is, therefore, important for students to be informed about student credit cards.

Benefits

The opportunity to start building their credit score is perhaps the biggest incentive for a student to obtain a student credit card. If the student obtains a credit card and manages it responsibly, the student can have a very decent credit score by the time he or she graduates from college. The responsibility that is displayed by the student in regards to his or her first credit card may very well set the tone for the rest of his or her life.

Another benefit of having a student credit card is that it teaches students to be responsible adults. The lesson of being responsible with ones finances is one of the most important lessons an adult will have to learn. Managing the credit card and monitoring his or her credit score is important when the student obtains a credit card. Most credit card companies provide an easy method of keeping track of the balance on the credit card. In order to manage his or her credit score, the student can utilize any of the free credit score options available to them.

Another benefit of having a student credit card is that it will give the student funds to fall back on in case of emergency. As long as the balance of the card is well maintained, the student and his or her parents will not have to worry should an emergency come up.

Downsides

One of the biggest downsides to having a student credit card only comes up if the student is irresponsible. If the student fails to pay his or her bills on time, they could end up being stuck with massive amounts of credit card debt and a low credit score. Students and their parents should, therefore, think very hard when making the decision to obtain a student credit card. If the student cannot be responsible enough to make the payments on time, then he or she would be better off not obtaining a student credit card.

The decision to obtain a student credit card should be made carefully and should be based on proof that the student can act responsibly. Though there are many benefits to obtaining a student credit card, the downsides could be life changing. If a student is at all hesitant about their ability to make payments on time, then the student to forgo this option until they are responsible enough. For those who are responsible enough, a student credit card could be a jump start to a great credit score and a better life.