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Research: Student credit cards and facts for parents - Credit-Land.com

Credit cards are an essential item irrespective of age and work. Nearly all people of all ages have a credit card or want one. The student population is no different and most often applies more than any other. Earlier colleges were the ripest ground for students to get credit cards. It was easy to sign up and in case of defaulters the parents would have to inevitably pitch in. With a lot of college going youngsters incurring large debts there has been changes in rules about students getting credit cards at a young age.

New regulations for student cards

The new rules require that any student who gets a credit card has to be over 21 years of age. If they are under this age then they will have to show proof of employment and ability to pay their bills on their own. student credit cards may be having special deals and discounts at select stores and brands. There is however a need for the student to have a co-signor before they can get a card. While getting student card sir a great way to begin working on your credit history from early on, it can also cause complications if you make wrong judgments and overspend on the credit limit given. If it has a co-signor then both parties are equally affected for any mistakes made.

How you can work things out with your teen

When looking for student cards for your youngster look for flexible options. Firstly check if you can regulate the credit limit and also decide on the cards usage. If you have an upper hand you can always stay abreast of the way the card is being used and close it if you feel the activity on it is not justified. It will help your youngster to learn to use credit responsibly as well. The biggest problem is when you give your youngster the credit card for emergencies. When they go out with their peers and are out of money, they might consider it an emergency and go on a spending spree.

Spending on luxuries and parties is also something most youngsters end up doing. Having a cut off on the cards limit and also having an eye on the monthly expenses will help you to have a hold on things. Have open channels of communication so you can discuss what is okay and what is not. Try to approach things in a non aggressive and non intrusive way so that your teenager learns to spend responsibly without feeling like you are interfering all the time.

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