Student Credit Cards: A Solution For The Future

There are some things in this world that are a certainty: the sun will rise, the sun will set, and there will be credit card providers vying for your college student to sign-up for a credit card through their companies. Almost every college campus in America is occasionally plagued by credit card companies offering free t-shirts to students who sign up for student Credit Cards. Most parents feel that student Credit Cards are a bad thing: that the card will put their child deep into debt and will teach them to be irresponsible with the little money they have. This is far from the truth.

When used correctly, student Credit Cards are actually about teaching responsibility and building credit score. This does not mean that you should jump out and accept just any offer that is lying around. Students need to be fussy on which card they chose to apply for, just as adults are. They need to check out the APR, as well as if there are any other charges, such as an annual charge just for having the card. Parents that are involved in helping their child choose a card can take the time to explain what an APR is, any other charges that may pop up, and what happens if the bill is not paid on time.

The Basics

There are three basic types of credit card companies that offer student Credit Cards:

Entertainment Companies: This is for cards such as Diners Club and American Express. House Cards: These cards are for specific stores, such as J.C. Penney and Fashion Bug. Major Cards: These are cards from major companies, generally banks, and will be either Visa, Discover or MasterCard. They can be used at any store that accepts major Credit Cards. Tips and Tricks

Most of these cards will require that there is either a specific amount paid back monthly, or that they are paid off on a monthly basis. It is possible to make serious mistakes with student Credit Cards; mistakes that can land the student in financial trouble. Here are some tips and tricks for using these Credit Cards in order to create good credit, not a financial mess.

It is a good idea to make small purchases. Using your card to pay for a new notebook or student supplies will be much easier to pay off than if you use it to purchase a computer or something spontaneously.

Having a budget is perhaps the biggest tip that every student should follow. A budget helps you not only to be able to afford everything, but also helps for when you get into the working world. Using your credit card to pay off your monthly expenses is one way to build your credit without purchasing things you don't need, and can't afford. If you use your credit card to pay for your groceries or your utility bills, you can pay them off directly and enjoy the good credit. You may even be able to sign up for automatic billing, which will bill your credit card once a month, so that you will never miss a payment.

Make sure that you do not overspend on your card or forget to make your monthly payments. Even one missed monthly payment can cause bumps in your financial road. Student Credit Cards are a great way to help a student learn financial discipline. It also has the benefit of allowing them to afford some of their own college necessities. Remember to help your child, instead of hindering them, so that they have a credit card from a company that even you can trust.

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