College Students And Credit Cards Are Dangerous
Learn About College Students And Credit Cards
Many so-called experts will give you a long list of positive reasons why college students and credit cards can be beneficial. When they enter the work world they will be way ahead because they will have already established a credit history. Their needs (food and housing, books) will immediately be met since they will not have to wait for a cash transfer or check from home.
However, the list of negatives far outweigh the list of positives and have a more lasting impact on their financial futures.
Deep Debt
Many college students may seem all grown up and worldly but are clueless about the concept of debt. It is so easy to rack up credit card debt, especially when college life is half about learning and half about making new friends and having fun. Impulsive spending is quite common among college students while they are building relationships and learning. They want they get is easy to accomplish with credit cards.
If they mindlessly build up credit card debt during their formative college years, they will not only be responsible for the financial burden of their student loans when they graduate, but also their credit card debt.
Deep Unpaid Debt
Too much debt does not make a very positive credit history; especially if they pay their bills late or miss payments. Their credit scores will be viewed by employers, landlords, auto loan companies and insurance companies. If they have a poor credit score because of too much fun and too little responsibility, is it worth it?
You would do anything for your children and believe that college students and credit cards is the right financial move. Before you make that decision, decide if your child is financially responsible and capable of making good financial decisions. It is not a bad thing if they are not; but wouldn’t you want to know that before you set them up for a financial nightmare?