Going Plastic: College Students and Credit Cards

Cash is beginning to fade away as plastic, in the form of debit and credit cards, charge cards, and debit cards takes over. At the Student Credit Card Blog, we provide up to date advice on using student credit cards, debit cards, and charge cards for teens and college students. This site also reviews the current student credit card options. Our goal is to provide clarity and information. Parents and their teens/tweens can find student credit cards from a leading, trusted company, depending on the time of year. Consider our rotating sponsors. Find insight about interest rates (APR), rewards cards, and info to effectively manage finances and build credit in a responsible manner. It is always important to use credit responsibly. It is important to ensure you can pay back your credit timely to avoid late payment and over limit fees. Many people initially get into debt with the costs of attending school mixed with the appeal of getting credit. To avoid this you should only use credit for things that are essential and emergencies. It is important to asses why you are getting a credit card. If you want to establish your credit to be able to buy a home or car later on down the line, then you are taking a step in the right direction. Prepaid debit cards and student credit cards are both renown for having a lot of fees attached to them. This is why you should read all of the paper work that comes with any credit offer in order to ensure you are getting the best possible deal. Students are one of the groups of people that are usually bombarded with credit and debit offers. If you learn to differentiate the good ones from the bad ones and follow some common sense tips in your decision making process you will be better off in the long run. No one says that you have to be in debt when you finish college, and if you're not you can really start making money.

Working With Parents To Build Your Credit

College students should get credit cards for two reasons only. One is to have a safe and convenient means of paying for the items that they need and the other is to build credit history. Getting started on building your history early in life makes it easy to be on your way to achieving your goals much sooner than others. For instance you will be able to purchase a car or home much sooner when you have your credit history established at an early age. 

That said the laws today make it harder to get a credit card at an early age. Restricting minors from entering into legal credit card agreements is meant to protect them from misuse of credit at an early age. Until you reach the age of 21 or get a job where you earn sufficient money to pay the credit card bill you won’t have the option of owning a credit card that is solely in your name. 

If you’re under the age of 21 you can still build a good credit history if you piggy back on the account held in someone else’s name as an authorized user. When you do this you will have a credit card in your name and will be able to enjoy all the benefits of having a credit card without the liability associated with the account. Since you do not supply your financial information the actual owner of the account will be liable for all charges made to the account. 

Since there are risks to everyone associated with the account a decision to piggyback off someone else’s account must be entered into only after careful consideration. Since the account activity shows o the credit reports of all the users any defaults on your part will in fact affect all users on the account. 

Parents are obviously the best choice when it comes to being added as an authorized user. Have a clear idea of the limit that you will need based on what you will be able to repay once the bill arrives every month. Keep in mind that part of the responsibility of proper credit card management is the ability to make payments on time. It is an even better idea to repay the balance in full to avoid costly interest rates. 

Once you have a clear idea of what you need you can approach your parents and broach the topic explaining what you need. It is important that you make it clear that you understand the proper use of credit cards and that you plan to repay what you use on the card. If they agree you may or may not draw up a contract to solidify the agreement before your parents contact the credit card company and add you as an authorized user on one of their accounts. 

Shortly after this your parents will receive a card with your name in the mail that you will be able to use. Another option will be to apply for a student credit card and have your parents cosign with you. Either way you must understand and do what it takes to build and keep a good credit record by using your credit wisely.