Students can have credit cards

Students can have credit cards - as long as they are able to handle the responsibility that comes along with it well. How young is too young? There is this scene in "Desperate Housewives" with Bree's son Andrew spending her credit card on his expenses. Andrew's only in high school and he doesn't know the value of money yet, so he was just shopping away - for him and his friend.

College student credit cards are a different discussion. Naturally, when one moves out of the house, it is expected that he stand on his own two feet. A majority of college students have part time jobs in order for them to maintain their keep. This is also when they start applying for credit cards.

Mature college students know that in order for them to make a loan, they must maintain their good credit card history. Continuous over-spending and paying the bill late may result to a negative credit card history and these can easily strain their chances of getting a loan approval. Thus, those students who are wise and mature enough to understand the benefits of having a college credit card do their very best to limit their expenditures.

The challenge now is which credit card must a student choose. Because of the demand for credit cards, banks know that the best way for them to lure possible clients in is to come up with benefits and rewards upon signing up with them. Now, it is advised that students applying for credit cards must always calculate in his head whether he will gain or lose more with the financial decision he will be making.

With a credit card in their wallet that is easily within their reach, it is so easy to just pull it out and hand to the cashier. The student must know that whenever he pays using his credit card, he is borrowing money from the bank. What he owed must be paid when the statement reaches his doorstep.

Credit cards succeed and flourish in the high demand of economics because of their interest rate. It offers their clients the convenience to just pay with plastic when the situation calls for it, but later on, the advantage to this "simple" move is actually a "complex" matter of interest rate.

Students with credit cards often shop like there is no tomorrow. But if they take the time to study their credit card statements, they will learn that they are paying more with credit card than with cash. There is an interest and since the bank lent them money, they must pay not only for the purchase but also for the interest their credit card requires them to.

If a student wishes to have a bright future ahead when it comes to financial matters, he must start young. Naturally, when a bank or a lending corporation evaluate an applicant's credit history, a responsible credit history especially at a young age is brownie points. This increases the possibility of the student to get a loan approval for his first car or even his first home.

The reason why parents encourage their children to have credit cards is there's no knowing what to expect the very minute they gain their independence. Credit card teaches budgeting and financial awareness for a student. This awareness when done well can easily result to a bright fiscal future.