Good credit is vitally important to the college student on the verge of making an entrance into adulthood, and student credit cards can be a valuable partner in making that entrance a financially successful one. That good credit record will make it much easier for them to rent an apartment and purchase a new car and may even qualify them for a lower insurance premium.
Good credit management is a lifelong skill best developed early on rather than when it is too late. Student credit cards can provide parents with an excellent teaching tool. By allowing your young adult to have a student credit card, he or she can learn how to budget by having to set aside money each month to pay the bill. The student will also learn about interest and how it and late fees can build up if bills remain unpaid.
Astute parents of a college age child will set limits on how their child can use a student credit card. The credit limit should be kept low as a way to discourage binge spending and develop responsible spending habits. Once away at school, the student will learn quickly that it is wiser to use a credit card for necessary purchases such as books and school supplies rather than blow the entire credit limit on new clothes or a weekend trip. Parents can revisit the credit limit issue once the student has demonstrated responsible use of a credit card and developed a good payment history. It would also be a smart idea to teach the student how to make online student credit card payments. Eventually all payments will be made online, so prudence dictates that the skill be taught sooner rather than later. The most desirable student credit card package will have no annual fee, zero percent introductory interest rate and cash back rewards to reinforce good credit practices.
Parents should not be afraid to introduce their college age children to the concept of student credit cards. In reality, they would be doing their children a great disservice by shielding them from the reality of financial responsibility. Children need basic financial management skills and a good credit history in order to succeed in our financially driven world. Insurance companies, financial institutions, landlords and employers all use credit scores to determine whether an individual would make a good credit risk. Give your child the gift of a sound financial education before it is time for them to go out into the world on their own. See more Bad credit credit cards -- Credit cards -- Best credit cards -- Secured credit cards --