Credit Cards For Students - When It's Smart
Credit cards for students might seem like some sort of joke, but the offers are real and it's created serious problems for many young people and their families. It's amazing to some parents that their children who are still high school or college students with little or no way to repay loans are bombarded with opportunities for credit cards. Credit cards for students do have a valid purpose and can help young people learn to manage money. But face it, there are few teenagers who are responsible enough to manage credit card debt without getting into trouble. At the same time, there are some valid purposes for students to have credit cards. Credit cards for students who are traveling can mean that your student doesn't have to carry cash. This could be a safety factor in several ways. First, a young person who is pulling out a wad of cash to pay for purchases is likely to garner some unwanted attention. This student may even become the victim of a violent crime because of that attention. Credit cards for students are also safer because a lost or stolen credit card is easier to recover from than lost or stolen cash. There are some other advantages. Credit cards for students can give students a real-life lesson in personal finance, but only if there is some adult supervision and the students are made responsible for their actions. Otherwise, the student quickly learns that being irresponsible is easier in the short term and can do major long-term damage to his credit score. One other major advantage to credit cards for students is that the student has had his or her first credit card experience while being overseen by an adult. That means that having a credit card won't be a novelty once the young adult is on his own and he'll already understand the need for handling the credit carefully.