Student Credit Cards

If your college student is going to school in another city, you may want to get a student credit card to help you manage and review expenses and to allow your son or daughter the flexibility they need to order books and pay expenses.

A credit card for students can be a great idea but you have to anticipate the issues that may arise. With free reign, a student with no financial management skills can get into a lot of debt. When you look for student credit, check all the things you would check for your own credit card. Be sure the interest rate is not too high and look for a fixed rate credit card to help you manage payments and expenses.  

One advantage to credit cards for students is the ability to build a credit rating for your daughter or son. With appropriate use of the card and management of expenses, your child will graduate college with a great credit rating and the ability to get a car loan, rent an apartment and buy furniture and a TV!

Most large credit card companies offer student credit cards with special features and controls. If you don’t want to get a separate credit card for your student, look into getting an additional card on your own account. It may be easier to manage credit card charges and review expenses and if the card is in your son or daughter’s name, and they are making payments, you can still help them build credit.  

Above all, you should sit down with your child and talk to them about the responsibility of carrying student credit. If they have a part-time job it would be wise to ask them to make payments on the credit card either to cover a percentage of their expenses or to pay all expenses. This will help your child understand financial responsibility.  

If you will be paying the bills, help your child understand when and how you will allow them to charge expenses on the credit card. Going out for an occasional night on the town may be OK but in general you will want your child to charge student credit items like books, school expenses and practical clothing like clothing or coats.