Should Your College Student Get a Credit Card?
College students are in an in-between stage. They’re not children anymore, but (most of the time, anyway), they’re not exactly self-sufficient adults. The typical college student lives in a college dormitory, away from his or her parents, but the student still relies heavily on his or her family, particularly when it comes to finances. If you’re the parent of a college student, you’re probably wondering: Should you get your child a credit card?
There are both ups and downs associated with getting a credit card, particularly when you’re in college. Following are some of the benefits that a college student could enjoy with a credit card:
- Build a good credit score – The typical college student doesn’t have a whole lot of credit, which can be problematic in the future. By getting a credit card now and keeping up with the payments, a student can help to build good credit, which will save a lot of worry down the road.
- Budget where money’s going – A lot of credit cards that are currently offered come along with budgeting programs that allow the cardholder to divide his expenses into categories, enabling him to see where most of his money is going. This could be very helpful for a college student, as it would help him or her figure out how to budget.
But there are some cons, too, including:
- Temptation – It’s so easy to lose control and overspend when all you’re using is a piece of plastic. This can be particularly difficult for college students, as they’re sure to be tempted to yell out, “Just charge it!” when friends want to get pizza or throw a party or some other unnecessary expense is brought up.
- Consequences for late payments – Let’s be honest—college kids aren’t necessarily the most responsible people. Chances are that at least once, they’ll forget that their credit card payment is due. They’ll be quick to find out that late payments come with a fee, which means that they end up paying more for what they charged than they meant to. This kind of lesson may take more than once to be learned, unfortunately.
These are just a couple of the pros and cons that come along with getting a credit card while in college. What’s your opinion? Do you believe college students need (or should have) a credit card?
Katrina Robinson is a freelance writer who covers a wide variety of topics ranging from finances and private student loans to lifestyle and nutrition.