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Credit |
Positives
and negatives of student credit cards
Some positives of credit cards:
1. Allows you to purchase needed products
and services now and pay for them over time
(i.e. higher education, car, home).
2. More convenient than cash for some reservations
(i.e. airline, hotel, car rental) and purchases.
3. Safer than carrying cash.
4. Useful in case of short-term emergencies
(i.e. car repair).
5. May provide you with desirable benefits
(purchase protection, travel insurance,
frequent flier miles, cash back bonuses,
etc.)
6. Helps establish a credit history. Read
"Building
a better credit report" from the
US Government.
Some downfalls of credit cards:
1. Interest and fees can be considerable.
2. Easy access to money presents a temptation
to overspend & abuse your credit privilege;
thereby, committing too much future income
to credit payments.
3. If credit card accounts are not paid
as agreed, then your credit history will
be negatively impacted for a number of years
after the event. This could affect your
future applications for mortgages, other
installment loans, or other credit related
applications. "Tips
on dealing with debt" from .gov.
4. Available credit may offer a false sense
of security and may be thought of as emergency
savings or a source of income.
5. Expense of using credit may outweigh
the benefits (i.e. purchase protection,
travel insurance, frequent flier miles,
cash back bonuses, etc.).
College students and credit cards is a touchy
subject. We do not agree with on campus
credit card marketing tactics which mislead
students. At some point students do take
the next financial step of building and
managing credit with a student credit card.
Credit education and financial literacy
should be the first step. Know what you're
getting in to and educate yourself. A student
should not apply for credit cards because
someone on campus is giving away free pizzas
to those who fill out an application. Each
and every time you fill out a credit card
application, it goes on your credit report.
When you feel you are ready for a credit
card, take your time and review multiple
offers before applying. Student
Credit Cards features credit education
and multiple college credit card issuers
and a students
credit card blog with direct access
to online applications. Comparison shop
and read all fine print. If you are already
in debt, visit their student
credit card debt section for assistance.
If used properly, credit can be a powerful
tool that helps you sculpt your financial
future in a positive way. Misusing credit
will set you up for financial disaster.
Please be careful and smart about applying
for and using credit. |
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