Credit cards have undeniably helped many students get through with their finances. Tuition fees, books, dorm fees and other necessary costs are no joke to them. When parents don`t have all the money to get their kids to a college or a university or when kids don`t get much pay from their part-time jobs, credit is always the other option.
Most students obtain their basic credit history through student credit cards. These cards don`t need students to have credit experience and these are very helpful in cases of emergency. Aside from tuition fees, the cards can cover medical bills and rental fees.
Credit card companies understand these situations and provide special rewards for student credit card users. Students gain rebates for every purchase, earn airline miles and receive items by earning credit points. Government and experts advise students to be mindful and responsible with managing their credit cards. Simple ways like buying only what is needed and paying on time are the basic strategies for not getting too much debts. Discipline usually starts with the parents. At an early point, parents should start educating their children with credit and money management. If students fail to get their credit balanced or positive, they may end up leaving school broke or unable to graduate. Worse, they will be having damaged credit history.
Students obtaining their own student credit cards must recognize risk. The risk is lessened or zeroed out if the student using it has the proper buying attitude and is capable to handle the bills on time. Student credit history is very critical since it is a primary evidence of the students' attitude towards money. At times, future employers check credit reports to assess responsibility, landlords sometimes base lease contract approvals through the reports and billing companies investigate credit backgrounds before releasing service contracts. If the student fails to solve his or her credit problems, the consequences may be grave. Obviously, credit failure may cause graduates to have a hard time looking for jobs and places to stay.
Credit cards can be mostly damaging to a student's future if the student can't manage the finances. It is harmless if the student, as previously stated, knows how to prioritize.
It's a good thing that credit card can provide bad credit history holders a second chance. Students may avail of secured and unsecured cards but nothing beats a change of attitude. A credit card failure can be removed from a student's history if the student learns and changes his ways. Parents must take part of the change and the government must create better student loan policies.
Students must take heed to what Wall Street Journal has once said that the government is an example of a financial management educator. The government finances are running down towards deficit, more debts than savings. Lesson learned: Follow what they say, and not what they did.