Student Credit Cards, How May Them Help Your Kids With Academic Expenses

If you have kids attending college, you probably know better than anyone how often do young people run out of money before the ending of the month or how difficult is for them to get along with a monthly budget when they have so many things to pay month by month. There are those well known academic expenses including tuition, fees, books and library supplies. Then of course they have to eat and get dressed. Ok, so far we could estimate a monthly amount and help them to develop a strategy on how to maintain within that budget.

Then we can start counting those unexpected expenses like cars breaking down, medical emergencies or any other kind or unexpected situation in which your kids have to spend money out of what they have programmed.

Talking With Your Kids About Credit Score

Student credit cards are offered by creditors to college students to help them solve these kind of situations. Of course credit cards are what they are, just credit cards, even these ones that have been specially designed for students.

If your kids are already in college, they would probably have already been offered to apply for a student credit card. If they don't have their own, or an extension of yours, a student credit card may be a good option for your kids to start a good credit score.

Assuming a responsibility on their expenses, paying bills on time and developing sense to manage a certain amount of credit will help your kids acquire a good financial behavior and they will be rewarded with a good credit record.

Knowing this may give them an idea on which way to take in the future. A good credit score is the main door to any kind of loan they would like to obtain, like car loans, mortgage loans, or personal loans. Even if they are thinking about applying for a private student loan in the near future, having already any good credit record like maintaining a student credit card will make easier their way into approval.

Some Advantages Of Student Credit Cards

They are easier to obtain than most of credit kinds for students. You may apply even if you don't have a job.

Student credit cards offer the possibility to face some of the academic related expenses, such as books.

Same as any credit card, they can be used to do online shopping, paying your purchases in several monthly payments and they also apply for many rewards and benefits, depending on the credit company.

Carrying a credit card is always safer than carrying cash. Facing a theft or an eventual lose, just calling the credit company will maintain your account safe. You may have to be responsible for the first $100, but this will depend on the situation.

They also offer a good source of fast money in case of an emergency.

Some Disadvantages Of Student Credit Cards

As we said, a student credit card is still a credit card, and credit companies tend to offer high amounts of credit to students, even if they don't have a job.

As they can be used as well as regular cards, it's difficult sometimes to refrain the desires of buying everything. Having access to a high amount of money, may be a bad thing if you don't develop a good financial behavior. If you are not careful with your student credit card, you may find yourself into debt sooner than you can imagine.

Paying your bills out of term is another way to get into debt. Even when student credit cards don't have annual fees, interest rates and penalties due to late payment may be slightly high.

A Few Tips On How To Be A Good Credit Card Holder

Use your credit card wisely, try to maintain your expenses within an amount you know you will want to pay.

Don't do late payments in order to avoid penalties and high interests.

Try to keep a record of your credit card purchases, even those ones that are not related with academic expenses. This will help you to control your debt, and will avoid paying for undone purchases.