Teaching Them Positive Credit

Uncategorized, credit

A student credit card can be a safe way for a college student to start to build a positive credit history for several reasons, one of which is that credit limits on student credit cards are relatively low, starting around $300. College years are important financial foundation building stages in a student’s life as many steps they take can benefit, or hurt, them for their future. Let’s start talking about the important of building a positive credit history.

As adults, we know how very important a credit history is, but our young adults are often not aware as of yet and they need to learn. So it is our duty as parents to advise and teach them. A college student credit card will be the easiest credit card to obtain that will ever be offered to them. The credit card companies realize a college student will have little to no credit history and are still willing to give them a card. There is actually a method behind their thinking. They are looking for loyalty. When someone allows you to do something that generally is not allowed don’t you often have some loyalty towards them? This is the same principle the credit card companies are counting on when offering a low credit limit student credit card to college students.

Parents- the kind of things you need to teach your young college student is how to best use the card, the importance of making a payment each and every month on time, and the importance of paying the balance off in full when ever possible. This kind of good, responsible financial behavior is what will help to create that positive credit history we all seek as adults. Explaining to them that what is important regarding a good credit history is how it will create financial freedom for their future. Explain that practicing responsible financial spending and repayment habits now will put them on the fast track to getting that new car loan or purchasing a home in the future without the high interest rate and high payment issues which are simple outcomes of not treating their credit properly.

Financial freedom is a helpful way for one to accomplish good fiscal goals and it is important to start building healthy financial habits now. A student credit card, when used properly, is a great tool to begin this lesson. As a new college student or even a high school senior they will be inundated with student credit card offers, so helping them make the right choices are in their best interest. They will be offered college student credit cards with low or 0% interest rate introductory offers as well as credit cards that will offer some kind of benefit or perk. Explaining to them that they should not take a card because of the immediate benefit and to look at the fine print and benefits is where you will truly see whether it will benefit them or not.

Giving your college student the benefit of this education will help them grow into a steady and mature adult. It is our responsibility to help them grow and mature. Give them your experience and knowledge and they will be that much better off for it – financially. Their choices today will help mold the future, help them along to make the right choice so they have a good future they can look forward to and be excited about. They will thank you for teaching them.

FIND credit info and a selection of student credit cards for comparison at www.StudentCreditCards.com

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Student credit cards.com @ January 11, 2009