For young people, turning 18 is a big event in life where major changes happen. For one, a teenager would soon enter college to pursue higher education. Some teenagers would leave their parent’s homes and go to a boarding school while others may go to a college in another state or country. All these changes present different challenges to a young person.Young People and Financial Challenges
When it comes to financial matters, turning 18 and going to college is a teenager’s chance to own his/her first credit card. In the past, most credit card issuers require a co-signer to open an account but today, you can apply for a student credit card without the need for a co-signer.
However, being able to get a student credit card so easily may also have its disadvantages. If you’re a college student, you may receive dozens of offers from various credit card companies and all may promise to give you the best deal. It could be tempting to sign up immediately with the first attractive offer but doing so could be a very dangerous move.
Signing up for a credit card without first considering your options can result to problems later on. For instance, you may soon find yourself stuck with a student credit card that has high interest rates and fees. Thus, if you’re thinking about applying for a credit card, you should be willing to take some time in carefully studying your options.
Remember, you can learn about the real costs and terms of a credit card if you read its entire Terms and Conditions. Otherwise, what you read from the ads could mislead you into signing up for a student credit card that has unreasonable terms.
Prepare Yourself for the Responsibilities
Are you ready to be a credit card holder? Bear in mind that owning a credit card isn’t just about the freedom to make purchases without cash or the flexibility to pay for your expenses at a later time. Being a credit card holder is also about being true to your obligation to pay off your debts.
Once you get approved for a student credit card, use it as a financial aid to your education. Before you charge any expense on your card, don’t forget to analyze the situation. Ask yourself:
• Is this expense really important?
• Will it help me with my studies?
• Would it be better to pay for this purchase in cash instead of charging it to my card?
• Can I afford to pay off my balance in full for this month?
• How do I plan to pay back this particular charge?
• Am I exceeding my credit limit?
Credit cards for students are meant to be used as tools in building your personal credit history. You should know that you can only build a good credit history by acquiring credit and by being responsible in handling debts. Owning a student credit card should train your money-management skills and your ability to discern good debts from bad debt.
