Credit card analysts are quick to advise students to delay their personal gratification to have their credit cards. Also, they are discouraged to have joint accounts with their parents according to credit card analysts. They say that joint credit cards can be a source of stress for their parents.
University students have a lot of expenses not only in school. They also they learn a lot of things which tempts them to buy and spend money to purchase their own luxuries.
Credit card analysts add that university students are in the age period where they start to realize that they are becoming older and need to more stable. But even with such thinking, there are a lot of factors which motivate them to enjoy their stay in the university.
It is also the peak period where their vices and personal preferences are most apparent like drinking alcohol, deciding to have their own car or even, moving to a place away from their parents. Most of these students apply for their own credit card but most of them are denied because of the lack of credit history and insufficient income. Thus, most of them convince and persuade their parents to get them included in their respective joint accounts.
Although helping your child is a good value, credit card analysts say that sharing your credit card even to a person close to you is risky. Holders of a joint account share the responsibility of the credit card equally. The balance that will reflect on the credit card is not a single party’s balance alone.
Analysts say that credit in joint accounts is inclusive of income from the child and making one’s child as an authorized user means that he can also use the card without any major agreement to pay. Thus, this implies that not only your son will be affected, but also your credit card history.
Analysts then stress the need for parents to be mindful about a lot of implications that can surround not only the expenses that one will be shouldering in joint accounts the instances of misunderstanding that might arise.
If the parent is really willing to help their child, there are a lot of alternatives that are opened up by large credit card companies like Student credit cards and secured credit cards. These cards will allow the student to have their card without putting at risk their parent’s credit.