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Credit Cards For College Students - Good Idea Or Mistake?

Tuesday, August 14, 2012

Lots of credit cards for college students exist, but does this mean that they are a good idea? The whole point of a credit card is to help someone build up credit. The problem is that credit cards are also incredibly tempting. How?

Credit cards allow you to spend money that you don't have, and lots of times this money can seem imaginary. The problem is that a credit card is far less than imaginary, and this can result in numerous mistakes. To begin, let's discuss the numerous benefits of obtaining a special college student card.

Most students do not yet have any kind of credit. This means that their credit records are virtually unblemished. While this is (in some ways) a good thing, it is also a bad thing. Why? Without establishing some type of credit, it is nearly impossible to gain a car or home loan.

Thus, everyone must try and build up their credit in some manner. The easiest way to do this is with a credit card. That's why credit cards for college students are available. These cards often have a low credit limit, but they will help to build a positive credit record.

But, this doesn't mean that credit cards for college students are all good either. In fact, far too many students wind up spending more money than they actually have thanks to these cards. The best way to avoid this is to pay off a balance in full every month.

Unfortunately, this is not always possible. In this manner, these cards only sink college students into debt that they cannot afford. So, are these cards a good idea for college students? Well, that depends upon the person that is applying for the card.

If you happen to be financially responsible, then credit cards for college students are excellent options. If not, then you might find yourself with a lot of debt. Still, there is no debating the fact that a credit card will help to establish some type of credit, so it might be necessary at some point. Is a credit card right for you?

Ask yourself whether or not you can handle the responsibility of a credit card. If you can, then you might want to contact your local bank for an application. If not, then it might be wise to wait a year or two until you know how to pay bills properly . . .