Did You Know That You Can Have A College Credit Card?

Guest — Sat, 25 Oct 2008 10:34:03 +0000

As its name would suggest a college credit card is a credit card that has been designed for use by college students and is possibly better known as a student credit card. The idea behind student credit cards is that they let students learn all about handling credit and to experience the benefits of credit cards early in their lives. Really, a college credit card is an introduction into the world of credit cards and, even though a student could have experienced using a supplemental card on a parent’s credit card account, it is the first credit card that the student will have had in his own right.

In general terms college credit cards operate in exactly the same way as ordinary credit cards but there are a few differences which you have to know about. These differences occur because the credit card companies are taking something of a risk by giving credit to individuals who will often not have any credit history and thus they need to protect themselves from the higher chance of debt on college credit cards.

The first major difference is that credit card companies require that a parent or guardian co-signs the student’s application for a card, so that a responsible adult is aware that the student is asking for credit, and will also require that responsible adult to stand as guarantor for the account. Therefore, should the student default on the card the parent or guardian will be legally liable to make good on any debt.

The second main difference with a student credit card is that the credit limit is usually set at a lower level than that seen on other credit cards and is frequently fixed at between $500 and $1,000. This limit is also set at a relatively low level because the credit card companies consider this to be high enough to meet the needs of the vast majority of college students.

Finally, card issuers also cover their risk by fixing the interest rates on college credit cards a little higher than usual in an attempt to deter students from putting too much on their cards and to persuade them to maintain their spending within the sum that they can afford to pay off every month.

On the surface college credit cards might not seem very attractive to people who are used to using normal credit cards but in fact they can be a very handy tool for teaching youngsters to manage credit responsibly and have the additional benefit of giving student the ability to start building a good credit record, which they will find very useful after they have finished college.

College can be a very expensive time for many students and there are very few students who will make it through college without a mix of parental support, grants and scholarships, government loans, private loans and a part-time job. This is difficult enough in itself to manage and far too many students have problems coping with this and end up with no option but to refinance their loans, usually through student loan consolidation. When we add a college credit card into the mix we could merely be providing the straw that breaks the camel’s back.

Whether or not student credit cards are truly a good idea or merely another marketing ploy by the credit card issuers is something which you will have to judge for yourself but, whatever your view, they are without question something you must be approached with both eyes open if you wish to avoid needing to ask for help with debt problems and repair your credit report history in the future.

Teaching Teenagers How To Use Credit Cards

Guest — Wed, 24 Sep 2008 09:28:59 +0000

There are times when parents forget the importance of teaching their teenagers how to manage their money. If they have bad spending habits of their own, the children are going to pick them up and are going to make the same mistakes.

There are things that parents can do to teach teenagers to make the right choices, even if they are not the best at money management. Some think credit cards for teens are a bad idea, but they can work well if you know how to do it and what you should use.

You obviously don’t require to get credit cards for teens that allow them to spend what they want without a limit, or to give them one that has a balance that can easily get out of control. This is not the way to teach them about money, and in fact, can teach them that money is easy and expendable.

As a first step, a teen should have a job before you allow them to have any type of credit card. Secondly, they should know how to save money before they have a card too.

You don’t want to go through the traditional steps to get credit cards for teens. You don’t want the traditional type anyway. What you want to do is to find the prepaid types of credit cards. These only allow the teens to spend what they have put into the card.

If they have their own job, and have put money aside, they can use that money on their cards. Or, they can put what they have left on their credit cards for teens after they have saved some of their check. The second option is usually the best for teaching good money habits.

After you have done all of this, your work with credit cards for teens is not over. If you can, get a print out of what they have spent each month and go over it with them. If they’re running out of money fast, they do not have the control that they should be learning. Over a period of a few months, using credit cards for teens should show them how to spend prudently. They can then take these lessons on with them through life.

Credit Cards For Teens has information and payday loan reviews.

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Did You Know That You Can Have A College Credit Card?

Teaching Teenagers How To Use Credit Cards