bank rates

5 Ways Students Benefit From Credit Cards

Credit cards can teach responsibility, good money management.Some people view credit cards as evil, awarded only to build mountains of debt.

While credit cards can be dangerous if used improperly, they also can help save money and add protection on everyday purchases.

Here are five reasons why every college student should own a credit card:

Credit limits are low. When approved for a college student credit card, the credit limit is generally around $1,000. This allows for students to get a taste of what owning a credit card is all about, without risking a large amount of future debt.

Purchases are simplified. Sometimes, it helps to see just how often you spend money. Owning a credit card will allow a student to view their statements online as well as receive them in the mail every month.

It’s a lesson in responsibility. Knowing that a bill is going to come in the mail every month can be daunting for someone who has never had to pay bills before. That bill will always be affordable with a low credit limit, so this can prepare students for what’s going to come after college.

Build a credit score. Most students start college without credit, and a low limit credit card is a great way to build a credit score. Bad credit is generally better than no credit, so even if a student makes a few mistakes, a credit history is established.

Learn about fees and interest. Having students make mistakes like incurring late fees and going over their credit limit will keep them alert for the future. Plus, the bad taste of interest can deter them from paying it later on in life, even if it’s a few dollars every month.

I owned a credit card while in college and even though I made a late payment or two and paid a high interest rate, the experience was invaluable.

Like most lessons learned in life, it’s better to learn young.

Compare the best student credit card offers in our extensive database.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (1)
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 4.00 out of 5)
Loading...
One Existing Comment
  1. libertybelL said:
    on July 1st at 01:15 am

    Like it says here credit cards can be very useful to students but Having a credit card is a big responsibility.tou should always be careful with your spending.You will not get far with this life monetarily if you don’t know about compound interest.It’s a must right now to know about this.especially now with the recession and the growing number of people experiencing poverty. It pops up everywhere in customer finance, that trick of adding interest to primary. Once you learn the ropes, compound interest will not consume your bank account alive. You can better understand your installment loans as well.