What Are the Benefits of Student Credit Cards?

A student entering college can be bombarded with credit card offers on a college campus. Student credit cards can offer convenience, give an opportunity to build credit and to learn responsibility. It is imperative, however, that students also recognize the dangers of credit card debt.

Responsibility

A student credit card can teach responsibility in spending and paying bills on time each month. Students must learn to live within their means.

Emergencies

Emergencies happen and having a credit card for those situations can be vital. It is important for students to distinguish between an emergency and purchasing an item that is not needed.

Build Credit

Student credit cards give young adults a way to build credit. When a student graduates from college, having established credit will help him buy a car and rent or own a home.

Rewards

Many student credit cards offer rewards for purchases through points or cash back. These in turn can be used toward buying items students need such as text books, school supplies or plane tickets to travel home.

Safety

Students will not need to carry cash or a checkbook with them, which can be lost or stolen. With a credit card, the company can be contacted to report the lost or stolen card.

Warning

Many students find themselves with excessive credit card debt upon graduating from college. College students need to learn about the dangers of using credit cards for unnecessary purchases.

References

• Nellie Mae: Credit Card Corner