Tips For Making Smart Student Choices

When searching for a credit card for students there are many considerations to take into account. But before we address those considerations we must first and foremost state that in order to qualify for an unsecured credit card young adults under the age of 21 must either have a qualified cosigner or show proof that they have income.

That is a game changer for a great many and is a provision of the Credit Card Reform Act. Far too many students were getting themselves into financial trouble by not responsibly using the credit that was issued to them. And as far as the issuers go, well, they didn’t exactly help the situation with their lax standards for extending credit.

With that said, let’s talk about making the right choices. Having credit in college can absolutely be a positive thing on several different levels. It helps build a solid credit history which will in turn help the students secure the credit they will need in the future for a mortgage, car loans, business loans and so forth.

It is also a valuable asset in that it is an outstanding tool to meet emergency expenses. Many times students are away from home for the very first time in their lives and as we all know, circumstances beyond our control can and do happen in life. Having access to an emergency source of financing can be invaluable.

A credit card for students can also be quite helpful for paying for the necessities such as books and school supplies. Paying for tuition using a credit card isn’t advisable unless it can be paid off in full rather quickly. Heaven knows that tuition is expensive enough without tacking on interest rate charges.

Another alternative that is gaining more and more traction is a prepaid card. This allows funds that are directly deposited into a checking account to be accessed. New funds can be added at any time and parents can control and monitor spending activity. There is even a teen prepaid debit card on the market called Current by Discover specifically for teenagers to use.

Using credit wisely is all about making smart choices. In order to do that the student must realize that they have a serious responsibility to use the credit that is granted to them wisely. The problem with many students is that they somehow perceive their credit card as being a source of free money.

Of course it isn’t and they suddenly come to that very expensive realization when they find themselves deep in debt. There is no need for this to happen and it absolutely can be prevented by properly educating the student how to responsibly use credit.