College Credit Cards

Written by Jessica Duquette
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College credit cards can help parents and students during down periods when a tuition or boarding payment may be late. Obviously having school expenses paid for by a loan, scholarship or personal savings is ideal but many students are faced with uncertain times when they are waiting for funds to clear. There is nothing worse than standing at the bursar's office knowing that your tuition has not been paid in full and you need to make other arrangements. Having the security of a credit card will help ease some of that stress.

Credit Mismanagement

For people in the workplace, good credit is just as important as income and savings when it is time to make a large purchase. Establishing a good credit history in college will help but unfortunately many students with college credit cards may not be aware of the consequences of late payments or frantic charging. It is crucial to educate students about the effects of having a credit card and teach them that the card should be used on rare occasions or only if the purchase can be paid for in a short time.

Unfortunately credit card companies are allowed to issue credit cards to students with limited or no income at all. This can create big problems because students with no income will be unable to make timely payments leading to a poor credit history. There are situations when a credit card will provide needed assistance but appreciating the positives and negatives is imperative.

Benefits of College Credit Cards

You are aware of the potential pitfalls of having a credit card in college. Having a card may sound like a no-win situation but there are advantages of having credit while in school. Timely payments and credit management will allow you to build a solid credit history and can help you in the future. Also, some credit accounts may offer cash back or reward programs that may allow you to save money at the campus bookstore.

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But why are your kids paying the same amnout of tax that they were paying before their incomes fell? And what is happening to their expenses- are you charging them the same amnout for food, rent, and utilities? If they are trading with each other why are the prices of trade-able goods and services not falling along with the supply of business cards? Perhaps the prices are staying high because China Family is spending the cards that they accumulated, buying up all of your kid's Vegemite. You describe the economy: there is no longer much work being done around the house. The garden is in a sorry condition and rubbish is piling up. Why are your kids so lazy? Or is it that the Draconian Emperor (you as the govt) running the economy stubbornly refuses to bring their expenses down proportionately with income? What happens when we introduce Arab Family who just discovered their house sits atop a geothermal energy source. They supply both your family as well as China family with heat and electricity. The winter is particularly cold and China family desires more heat so they send more of their spare cards to Arab Family in exchange for more heat. But Arab family only has a fixed supply and tells your family that they will have to either pay more for heat or get less heat. Your family would rather forgo a snack than be cold so they pay the higher price for heat. But now they have less to pay for Vegemite and so your kids are forced to go into your pantry so they can sell more Vegemite to China family so that they won't have to go over the fence and work.