Virtually 90% of college students are applying for credit cards for students in their freshman year. The reality is that most students do not possess a checking account and have very little finance management skills. This is why it is vital to educate teenagers the importance of money management way before they get their own student credit cards.
Every purchase they make using credit card for students and each bill they pay will all be recorded in their credit report. The most effective way to teach students the value of monetary management is to educate them on the differences between good debt and bad debt. Good debt includes investments that increase in value over time while bad debts are factors that can result in poor credit rating such as neglecting to make timely payments on their balances.
The fact is, being consistent in terms of timely payments is essential in building credit because future employers and/or lenders checks an individual?s credit history and base their decision to grant loans or student credit cards on the person?s reliability and accountability.
While college students cards are used to provide extra financial resources for everyday expenses, it should only be used during responsibly. This is why it is imperative to stress that cards are only to be used during emergencies to avoid overspending. The good news is, few credit cards for students offer limits over $ 1,000 so this makes it much easier for them to use the card wisely.
Additionally, you may also introduce the concept of creating budget plans to manage expenses effectively. Include a category for card purchases in their budget plan and teach them how to set aside money for their card bills in order to pay off any outstanding balances on time. Fortunately, many college students cards come with features that make it easier to manage finances and budgeting.
Once they learn how to take care of their finances, you can help them start comparing the best card deals. There are a vast number of offers online and offline and it is up to you to determine which of these offers are actually worth looking into.
Ideally, you need to look for a card that offers flexible terms and reasonable finance charges. Before you come down to a decision, make sure that you compare all the various aspects of cards such as the rates, the annual fees, the terms, conditions, and additional charges that will apply. Create a list and narrow down your search until you are able to select which card is the most suitable one.
Related Credit Cards For Students Articles
|
Source: http://www.clearyourcreditcarddebt.com/educating-teenagers-on-credit-cards-for-students-usage/
iona taylor allderdice mixtape andrew bogut pi day monta ellis election results wiz khalifa taylor allderdice mixtape
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.