Credit Card for College Student?

by Nasrul Hanis

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Some fellow friends who are still studying in colleges asked me – Should a college student apply for a credit card?

Nowadays we can see that the terms for credit card have made it more difficult for college students to get a student credit card. And in fact college students need to think twice before getting one. We all know what are the pros and cons of using credit card, right? There are many college students became victim to the credit card debt trap at an early age.

Whatever it is, there are still a few benefits for college students to have credit cards.

Get used to credit card
It is a high possibility that you are going to deal with credit cards in the future steps of your life. You can bring yourself into the habit of using a credit card with good attitude including and paying the bills as soon as possible.

Build your credit rating
When you make your first major purchase such as car or real estate including home, you will realize one important thing for your financial management which is your credit score.

The earlier you get a credit card for yourself the earlier you can build your credit rating. Besides that, your credit rating becomes very important as you graduate from college and make your next step into your life. The point here is – if you begin building up your credit rating at an early age, you have the potential to achieve some big benefits later on in your life.

Getting the benefits of a high credit score in your working time
A high credit score can save you a lot of money over the period of a loan. High credit means that lenders see it is less of risk to give you the loan.

When you are buying your first car or first home, you are going to apply for a loan. And believe me, you don’t want to mess yourself with the credit problems.

One more question is, if a college student uses credit card, how is he/she going to use it effectively? Let’s see some of the simple tips below.

  • Using the credit card with a minuscule limit.
  • The credit card is used for reoccurring monthly expenses.
  • The credit card is only used in emergencies.

By doing these ways, a college student can minimize the risks from using credit card and looking to get benefits in the future as had been mentioned before this. So how about it? It is your choice!

{ 3 comments… read them below or add one }

Charles January 28, 2011 at 8:49 am

Good luck getting a 18 year old to be responsible with a plastic card that buys stuff =)

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Anita@African Mango Extract February 24, 2011 at 10:17 am

Haha, nicely put Charles! Agree completely.

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Rowan February 12, 2011 at 9:07 pm

Great opportunity for students

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