Secured Student Credit Cards
Student Credit Cards to Start Building Financial Success
Student credit cards are very easily obtained in many locations such as on campus, at social events, in bookstores, online, and in their mail. Credit card companies believe that students will be good customers. Most students stick with the credit card company that they first apply to and do not change. They normally, only upgrade the student credit card when it is necessary to do so.
Another reason, credit card companies have such lenient rules for student credit cards is that most students will not pay their credit card payments off in time and they will incur late payment penalties, interest fees on unpaid credit card balances, and annual fees. This will give the credit card company more money, so they love students that do not repay their student credit card balances in full each month.
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Remember, though, you will have to pay the balance before they can purchase the next month. If your student has a part time job a secured credit card will be great for them because you could ask that they pay back all or a portion of the money they spent on the secured credit card. This will teach them responsibility and how to use a credit card properly and also learn to not over extend themselves or they will not have any money the next month.
As long as they pay the balance monthly, they will be receiving a good credit rating by using their secured credit card. They will also not have all the late fees to pay and they will be learning a valuable lesson on budgeting and credit.
While they are learning to spend wisely with their secured credit card, you will have the peace of mind that they have the funds they need and you will not have to send them checks monthly. Don’t be surprised though if they are still not eating healthy and spend their money on items that you would not. They are just learning who they are and how to spend and use their secured credit cards wisely.
