Parents always take care of their children: mainly of their safety, health and education. But what about credit card usage? While your child is getting an education at college, think about his or her financial future.
Sometimes parents can not even suppose that their college-age son or daughter has already had a credit card account. If your child is at least 18 years of age, he or she may apply for a credit card even without credit history or with the bad one. And there is no need in a co-signer.
College students and freshmen in particular are considered to be the most trusting and loyal people therefore they are so attractive to credit card companies. Experts say that today many educational institutions use the licensing contracts and make credit cards with school’s colors, mascot or logo more available to youth. In any way credit card companies issue a huge number of cards for students’ convenience and life style.
What are the benefits of student credit cards? You can apply for a credit card even with so little income and without credit history. As you study, probably you don’t have a profitable job or have it at all. And it isn’t necessary because you can still apply for a student card and be approved. Any credit card likes a wise use. Only in this case it can be the right start for good credit and benefits in the future.
Students like any other consumers like to get bonus points and rebates. For example, some student credit cards offer their holders to earn free airline tickets, gift cards or free MTV events. Others allow having 10% discount at the MTV Store in NY and mtvshop.mtv.com or simply getting 3 % rebates on purchases with the card. Alluring? Sure!
The catch among those advantages is higher rates and rather low credit limit. The reason for them is evident. Students belong among the high risk consumers. Credit card companies do not wish to throw away their money and invent special security measures against the risk of repayment. As for low credit limit, it will become higher as soon as a student proves his creditworthiness.
College kids need also to know about the existence of identity theft. Many students fall victims to identity theft very often because they do not check their credit reports. Thieves may use their card information for the purposes and damage credit history without notice. Therefore, parents should educate their children and remind them to check credit report in order to avoid this happening.
Unfortunately, the problem of students’ debts is up-to-date. When students can’t afford to pay back their debts, parents help to overcome the problems using different ways. And that’s right. Your child does not have an income to pay it back and worries about that. Moreover, the devastated credit report will remind him or her of adulthood for many years.
As you see, the credit success of any student depends both on a student himself and the parents. Before applying for a card, think if your child is educated enough and fully realizes that a credit card is not free money. In short, a student credit card has both positives and negatives, but no doubt positives outweigh.
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