It was scary enough to think of them driving a car at sixteen. Now they are heading off to college. Most parents are not worried about their teenagers getting their hands on a credit card the plastic of choice for college students. But should they have credit cards in the first place?
It never fails. If you advice your child against something, they will want to do it even more. That goes for credit cards, too.
College students are the newest untapped market. While they aren't children any more, they're not adults either. Since they can qualify for loans for school and financial aid, they actually represent millions if buying dollars.
Credit card companies often make deals with colleges to distribute applications to their students in exchange for credit cards that carry the college logo or school name. It's too bad that those applications are not accompanied by some literature or a course in money management. When the college students qualify for those high credit limits, they don't account for the fact that they don't have the income to repay their purchases.
The question shouldn't be if the college student should have a credit card but who should give them one. Most times they will get one even if the parents don't want them to. To avoid some of problems, the parent can supply the student with a card.
A college student can be added to your own credit card. The card is issued to them with their own name but you keep track of what purchases are made. Start by setting some ground rules and see where it goes from there. If the student has been able to manage money before acquiring the card, they may be able to resist the temptation of using plastic.
Go over the statements once a month with them. This can be done over the phone if they attend school far away, or in person if they can make it home for a weekend. Keeping in touch and setting up payments adds accountability to the equation. With a credit card, they will need that from you.
Another option is to open a bank account and get a debit card. Your college student can use the debit card like a Visa or MasterCard. By adding a certain amount of money to the account each month, you are setting a "credit limit" for them. If they can manage the money in this account over a period of time, they could prove themselves ready for a credit card.
College students probably don't even know what a credit score is but it's certain that their parents do. Ease them into the world of plastic by letting them prove themselves and keeping their credit sound. - 14915
It never fails. If you advice your child against something, they will want to do it even more. That goes for credit cards, too.
College students are the newest untapped market. While they aren't children any more, they're not adults either. Since they can qualify for loans for school and financial aid, they actually represent millions if buying dollars.
Credit card companies often make deals with colleges to distribute applications to their students in exchange for credit cards that carry the college logo or school name. It's too bad that those applications are not accompanied by some literature or a course in money management. When the college students qualify for those high credit limits, they don't account for the fact that they don't have the income to repay their purchases.
The question shouldn't be if the college student should have a credit card but who should give them one. Most times they will get one even if the parents don't want them to. To avoid some of problems, the parent can supply the student with a card.
A college student can be added to your own credit card. The card is issued to them with their own name but you keep track of what purchases are made. Start by setting some ground rules and see where it goes from there. If the student has been able to manage money before acquiring the card, they may be able to resist the temptation of using plastic.
Go over the statements once a month with them. This can be done over the phone if they attend school far away, or in person if they can make it home for a weekend. Keeping in touch and setting up payments adds accountability to the equation. With a credit card, they will need that from you.
Another option is to open a bank account and get a debit card. Your college student can use the debit card like a Visa or MasterCard. By adding a certain amount of money to the account each month, you are setting a "credit limit" for them. If they can manage the money in this account over a period of time, they could prove themselves ready for a credit card.
College students probably don't even know what a credit score is but it's certain that their parents do. Ease them into the world of plastic by letting them prove themselves and keeping their credit sound. - 14915
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Take an inside look at debt consolidation loans and other debt reduction methods & how they can help repair bad credit, at Debtopedia.com. Visit www.debtopedia.com for more information and to get a free copy of my report Secrets Of Credit Card Debt
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