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First Credit Cards - Important Advice For First Credit Cards

college it’s student spending

Few things in life can make a parent more nervous than a child going off to college. As much as you would like the peace and quiet, you plead for them to stay nearby. But, in most cases, they don’t listen to you. They want to start their own lives somewhere else. If you really think about it, can you blame them? They have been listening to your rules and advice for years. Now it’s time for them to show what they are capable of doing in the world. You are proud of them for this, but you’re also concerned about drinking, drugs, and any other behaviors that might land them in trouble. While alcohol and drugs can lead to horrific circumstances, these types of circumstances are not nearly as common as credit card abuse. Most people don’t relate college students to credit cards, but it’s a serious problem. Just look at the numbers. The average freshman in the United States holds credit card debt of over $1,500. The average senior holds credit card debt of over $2,800. While the spending slows down over the course of four years, these are still troubling numbers. It’s not that $2,800 is the end of the world, but it’s still a lot of money and can sometimes be an indicator to poor future financial management.

What do college students use their credit cards for? Food, alcohol, clothes, tickets to concerts and sporting events, and books. Why do college students end up with so much debt? Most college students don’t have a job. Therefore, they won’t have much money to spend. If their parents aren’t helping them out with spending money and they receive a credit card offer in the mail, what do you expect them to do? Keep in mind, these are kids in their late teens. They’re thinking about now, not the future. If this is supposed to be the time of their lives, they’re going to want to make the best of it.

Is there a right way to go about getting a first credit card? Yes. The most important thing to remember when it comes to first credit cards is that a college student should only have one. This is the case with grown adults as well, especially since purchases can be much larger. However, bad spending habits start at a young age. This is why it’s so important that the number one rule for first credit cards is followed. If a college student gets his hands on two credit cards, it’s a clear indication that he intends to rack up plenty of debt. Avoid second credit cards at all costs.

Another key for first credit cards is for a college student to make sure he gets a low interest rate and no annual fee. He might be sent credit card offers through the mail, advertising a 0% introductory rate. This can be enticing, but it won’t take long for that introductory rate to end and for the go-to rate to be extremely high. The best way to get a first credit card is to go to a bank your family is familiar with. At a bank, you can sit down and talk to someone about potential opportunities. If no offers are available, he can always go with a department store credit card, or maybe even a gas credit card. This is a good way to build credit, but the interest rates will be high. It’s important that he at least doubles the minimum payment every month.

If you’re a worrisome parent and you want to know what’s going on at all times, simply put his name on your credit card. This way, you will know how much he is spending and what he is spending it on. The catch here is that since it’s your credit card, he might not have any intention of repaying his debts, which will not lead to much gain in financial responsibility.

If you’re a parent of a college student, or a college student yourself, you now know how to get a credit card. If it’s used wisely, good credit can be built up through the years, which will allow for large purchases, such as a car or home.

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