Student Credit Cards

Students Should Avoid Student Credit Cards

It’s been a long time since I was in college. Back then credit card companies were not falling all over themselves offering credit to all takers. As a matter of fact, credit cards were in their infancy. Also tuition expenses were much more manageable.

I understand that college students are now inundated with credit card offers from their first day in school. Apparently, way too many students are not only jumping at these offers, but are also running up huge credit card debts.

A typical undergraduate will have about $18,000 in student loan debt upon graduation. If you add on post graduate studies, (JD, MD and MBA degrees in particular) a new graduate could easily have run up $100,000 in student loans.

Everyone wants to have fun, especially when they’re 18 and away from home for the first time. But running up credit card debt in addition to the student loans is just plain dumb.

If you can handle the temptation, a credit card could be handy in an emergency, but getting a stereo for the dorm room doesn’t qualify.

Too many students are having a hard time handling their student loans. Credit cards are just going to add an unwelcome burden that more and more students are unable to handle.

Your can seriously damage your credit score in the blink of an eye. Most credit card companies employ what is called a universal default clause. If you miss a payment on one card, all your other lenders will be able to hike your interest rates, usually substantially.

Ideally you should be one of the 45% of people in the US that don’t use credit cards ever. But if you insist on getting one, wait until you have a steady income. You really have no business running up debt that you will be unable to pay back for years down the road.

You’ll have plenty of time to ruin your life later, if you wish. Just say no to credit cards while you are still in school.

[For parents who wish to provide their children with a credit card for either day to day spending or for emergency use should consider using prepaid cards. This will prevent a heart attack when you open your credit card statement. It will also teach your children how to budget their money, something they will unlikely learn in school.

If parents wish to provide their children with a full blown credit card, they can control spending and also help their children establish a credit record.]

With all this in mind, here are the Top Student Cards

  | Top | Credit Cards | Home |