Credit cards for students?

[fluffysamantha]

While still young, students must enjoy the wonders of credit cards. Do you think credit cards for students are advantageous? What's your opinion? Guys speak your mind!

[Megan]

I think it depends on how well the student manages their finances. I got my first credit card when I was 18 and a freshman in college. And nearly ten years later, I still have never carried a balance on a card. It was a great way for me to build up credit and to learn to manage my finances. I knew that I couldn't spend more than I could pay off every month. I have friends who were just like me, but I also have friends who took the other route and graduated with sizeable credit card balances.

So I think it can be a great thing. Just depends on the person.

[Julie Rains]

I should have gotten a credit card when I was a student but never did. Students can manage money responsibly and if they don't, they can learn quickly. After I graduated, I was with a friend at Sears and we both applied for a cc to get a free plastic pitcher. She, who was unemployed, got a card; I, who had just become employed, got turned down. The difference? She had established credit in college; I hadn't. I think they are good for emergencies if nothing else; I like having a bit of cash and some credit cards everywhere I go.

I still have the pitcher but rarely shop at Sears.

[darryl]

If you look on the bright side, getting a credit card can help establish a credit history, assure some security in an emergency, and teach your kids lessons about responsibility and independence. The dark side? A credit card is a quick way to create long-lasting debt. Once your high-schooler has been accepted to college, your mailbox is likely to bulge with credit applications. Credit card companies offer such irresistibly low rates that two-thirds of today's college students have at least one credit card. Make sure your kids are aware of the risks that come along with plastic.
Help your kids understand that their credit record, just like their school transcript, can have a lasting impact on their lives. While the grades in a transcript reflect academic performance, the credit payments, debt, and income recorded in a credit history show the level of financial responsibility.

[gt0163c]

Originally Posted by fast1

i think you brought up some really good points but i guess why most parents aren't for the idea is because they believe prevention is better than cure...

I don't know about most parents, but mine encouaraged me to get my own credit card when I was in college. They also gave me a card on their account. The latter was so that it would be easier for me to charge expenses that they were paying for (plane tickets to come home on break, car repairs) and for use in emergencies. There was also an understand that if I charged an expense that they weren't paying for (concert tickets for example) that they would be receiving a check from me prior to when the bill was due. That worked out very well for us. But I also had a good understanding about budgeting and money and how credit cards work. I've always paid my credit cards off in full each month. Already having credit established when I got out of school helped me get my first apartment, not have to pay deposits on utilities and get an excellent rate on my first car loan. Further down the road, my continued excellent credit allowed me to get a great rate on my mortgage.

If students understand how credit cards work and the consequences of carrying a balance, I think it's great for students to get credit cards when they are in school.

[MNfrugal]

A friend of mine works in personal finance at a bank. She suggests that when high school students get a job, they should open a checking account and get a debit card. She said it's a great way for them to begin learning about managing their personal finances.

[Paper Shredder Clay]

I think it depends ultimately on the discipline of the student. There are too many college credit card offers and if students get multiple cards, whether they use it or not it can hurt their credit. Because cc companies know that all it takes is one mad shopping spree and they can max out all those cards. Also the Obama administration has or is changing cc rules; which may mean that cc will have smaller grace periods or even no grace periods at all. So the interest rates might start sooner than you think. Know what the terms on the cc is before getting it.

[Tenzo]

I think students should get credit cards, with the caveat that there should be some sort of personal financial education being taught. I think the lack of real understanding about credit and finance has helped get us to where we are today.

Respectfully,
Kevin

[FinanciallySMART]

I don't believe that students should get credit cards if they were not taught properly about Financial Freedom. Without Financial Literacy then they will make unwise and risky decisions that can be detrimental to them in the future.

[bhkyra]

As a college student of five years, I got a credit card when I turned 18. It came in handy a few times, like when the car had to be towed off the side of the freeway after breaking down.. Or to bail my car out of car prison when it got towed after being stolen. =( (Cars are money pits.. seriously..)

I keep my emergency funds in a savings account, so it takes 2-4 days to transfer over somewhere where I can use it. Sometimes, I can't wait the 2-4 days, so in those cases, I use my credit card as a free short-term loan, and then pay it off.

I also use my credit card to pay 1 bill a month, so the bank is less likely to close it out.

It's not a person's age that makes credit cards dangerous, it's the hands you put them into. Not all college students are inherently irresponsible, they just haven't been given the chance to make these kinds of mistakes yet.