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College Student Credit Cards: Friend or Foe?
There is much debate surrounding college student credit cards. Some swear up and down that they’re a disaster waiting to happen while others vehemently object and insist they are a must-have financial tool for college students. Which side is right?
When deciding whether college student credit cards are good or bad, you need to weigh the facts. These three truths will help you come to your own conclusion.
1. Aggressive Marketing
College student credit cards have gotten a bad rap when it comes to their marketing tactics — and some would say that it’s for good reason. You can’t hit a single college campus without coming across at least one application for college student credit cards.
That being said, while the applications are definitely readily available (to put it lightly), no one is forcing college students to sign the application. It’s the responsibility of a parent to instruct their children on wise financial decisions.
The credit card companies are marketing their product — that’s what they do. Parents need to do their part and make sure that they instruct their children in the ways of the credit world.
2. They’ve Got to Grow Up Sometime
Everyone has to grow up sooner or later and college student credit cards can provide some priceless lessons in the world of adult finance. For the first time, college students can be responsible for their own spending and their own monthly bills.
Yes, college student credit cards can provide the potential for disaster (but so can a number of situations that students encounter in college). Just because student credit cards have the potential to be misused, it doesn’t mean that they will be. Have some faith in today’s college students!
3. Paving the Way
Once a college student graduates, they’re going to need some things (a place to live and a car to name a few) and they’re going to need credit to get the things they need. If they don’t start building their credit history in college, when are they supposed to do it?
If a college student wants to be completely prepared when they graduate, they’re going to need to work on building a solid credit history while they’re in school. College student credit cards can be the means to that end.
If you know a college student (or are a college student) who has been debating about whether college student credit cards are good or bad, consider the above three facts and remember, it’s not college student credit cards themselves that are good are bad — it is who is using them and how they are being used that make the difference.
How to Compare Credit Cards
All across the United States, there are hundreds and hundreds of banks and credit card companies looking for your business. This day and age, banks and credit card companies are in competition with each other, trying all they can to get your business. To try and get your business, they offer different credit cards with various incentives, rebates, and other perks.
Before you make your decision and choose a credit card, you should always compare what each company or bank has to offer you. If you get an offer in the mail for a credit card, you should go on the Internet and look into it more. You should also make sure that you read the fine print as well, to see if there are any type of hidden fees or other costs associated with that card. Many times, with offers in the mail, credit card companies or banks will try to sneak hidden fees and costs in there.
When you start to compare offers, you should make sure that you look at the APR and the fees. The APR is very important, as this will tell you your interest rate. You want to get the lowest APR possible with your credit card. If you look at a credit card that has an unusually high APR, you should immediately rule it out. Credit cards that come with high APR rates can easily lead you on a roller coaster towards credit card debt. No matter how good your credit may be, high APR rates can leave you with charges that are really difficult to pay.
Among the many options available to you, you’ll have three primary choices for your credit card – Visa, MasterCard, and American Express. These three giants are the leaders in credit cards. Visa and MasterCard don’t issue the cards themselves, they have banks and other companies issue on their behalf. American Express, or AMEX, is the only one that does everything themselves. AMEX issues their credit cards, maintains their own networks, and doesn’t use any type of third party.
If you like to travel, you will probably want to choose either Visa or MasterCard, as they are accepted all over the world. American Express is the least accepted of the three, although the company is upgrading their networks every chance they get. Before too long, AMEX will be accepted virtually everywhere. Right now though, AMEX isn’t accepted in all areas of the world.
Discover is another type of credit card, although it isn’t near as popular as the three above. Discover does have some great benefits to offer you, although it isn’t accepted in other parts of the world. Most people who have Discover credit cards stay local and use their cards in the event of an emergency. If you don’t have a credit card and have been thinking about getting a Discover card, you should really think about that decision and choose either Visa or MasterCard instead.
All in all, there are a lot of credit cards to choose from. That final decision though, is entirely up to you. There are a lot of great companies and banks out there, although it’s up to you to find the best credit card for your needs. You can choose to go with a company or bank that’s local to you, or get online and look for your credit card. The Internet can be a great resource for credit cards, as long as you know what you want. If you know what you want before you go online – you’ll save yourself a lot of time and money.