Student Credit Card: Exploring The Truth

Credit cards are can be considered as better substitutes  for students to enhance  their financial wealth  from the beginning of their college life and to some extent also for obtaining money for handling sudden disasters and also to pay for the tuition fees. On the other hand, college life is a kind of a preparation for handling the complexities of the forthcoming hazards of professional lives.

Particularly, the problem of finances and debts should be kept in mind by all the consumers and they should remember that a financial emergency can kick off at any point of time when credit card dues may turn into a serious trouble as the individuals finances may take a really bad shape and he will be prompted to think of hiring the professional debt arbitrators to get away from the debt issues. The parents have a great role to play on this case and they should try to advise their children right from the childhood about the basic financial concepts such as the following:

•    The significance  of savings

•    The principles of budgeting

•    The very fact that consumers are required  to be more aware about the overall  financial scenario

•    The importance of knowledge and information pertaining to finances

•    Several  types of debt

•    The risks that are associated with debts

•    Learning to manage the basics of personal finance such as types of investments

•    The importance of giving

While leaving home to join college, the students will undoubtedly need credit cards for managing their expenses but they should remember not to misuse them and try to seek low interest credit cards mitigate their financial woes because the college is probably their first stint of staying away from the comforts of home and they are most likely to feel the bite of financial problems.

One of the major benefits of student credit card is that it allows disposable cash if at all there is an appearance of a situation when the monetary levels start to diminish and there is an immediate requirement of cash e.g. to make a purchase students can use low interest rate credit cards instead of rummaging on their parents’ money without making the speck of an abuse when using the card.

The other big reason for students using credit cards is by utilizing it to pay for the tuition fees since these cards come close-at-hand with zero annual rates it can have a great impact on the students to pay their tuition fees in little amounts for a longer period of time. However the issues of rising tuition fees and student loans are certainly not the only kind of debts which can be an issue to be contemplated by the students. According to trends and statistics, almost a majority of students are holding more than one credit card.

With new methods and approaches of attracting the college students to have credit cards has become an issue because getting more credit cards to fulfill their wishes is seriously prohibiting the students to establish sufficient credit by the time they have a degree and decide to start a life of their own. Student credit card is also another way for college goers to enjoy financial independence as this is the age when students would love the idea of spending according to their wishes.

But a lot of students acquire debts by way of mishandling their cards especially their first credit card as they lack in maturity to check the policies and features of the card that they obtain which gives more opportunity to the credit card company for lulling the more eager students to obtain a credit card which can eventually result in bad financial condition for the students and their families.

Besides getting into debts it also implies a bad credit rating for the students at this young age. There are many companies that are directly approaching students in their colleges in order to influence them to buy their credit cards that are providing a lot of rewards and free points which appeals to the students to acquire one.

But when it comes to using credit cards students should learn to use it carefully to avoid getting into vicious and recurring the debts. Student credit cards or shell gas card are better means of providing the college goers with a new taste of financial freedom but at the same time it comes with a lot of responsibility for managing finances in future. The best is therefore to obtain a card which can work best in the favor of the students by letting them enjoy their newly acquired freedom and to keep minimum debts. The issue of student credit card can actually be dealt in more ways than one.

It is amazing to know that in many developed countries, the kids are being provided with lessons on finances right from the childhood so that they are in a better position to handle finances when they grow up and also realize the importance of having a good credit in the long run. 

After all, the global financial crisis had not only had an effect on the parents but also the kids many of them had to leave their schools forcibly to join lesser known institutions simply because the parents could no longer afford the expenses of their education. The same students should therefore get to know from their parents about some of the better known opportunities to handle credit cards once they are in college.

Therefore parents have a sufficiently big role to play for shaping the financial destinies of their children. On the other hand, if the parents are habituated to borrowing and incurring debts, the children will learn the same. So it is important that they should be educated, in order to share their knowledge with the kids.

The bottom-line is that if the parents are moving in the wrong way with their finances they will actually end up teaching the same to their kids. For money management principles, the parents should concentrate on teaching their kids about catering to the need of the hour. Even before the children reach their college life, they should have an overall idea about the finances in order to cope with the financial agonies in their lives and also to get out of the same.