By David
College credit cards may not be the next fashion statement, but as anyone who has had a taste of life on a college campus will know, there are times when you have more money than you need, and times when even a package of noodle soup is an expensive proposition. To help ease this disparity and provide a way for students to pay for emergencies many colleges have begun to offer credit cards to their students. This has generated controversy as some suggest that a college credit card is a necessary tool for students, while others believe they are an early path to debt slavery.
Risks
There are those who believe that college credit cards are little more than a means to trap the next generation in early debt. With most students already incurring thousands of dollars in student loans each year, it does raise legitimate concerns about a student’s ability to pay off their debt once they are out of school. With students out on their own for the first time, the chances are high that they will want to spend more money than they have, and if they have a card they will have the means to. With the temptation to overspend so great, those without a high level of discipline may want to reconsider.
Rewards
Despite their dangers, college credit cards do offer benefits that make them worth considering. The use of a credit card in college, allows students to begin building credit before they leave school. Additionally credit cards include security features that are simply not present with a debit card or cash that actually make them a safer spending option. Combine these facts with the knowledge that a credit card will allow a student to get groceries, or pay a large bill in an emergency while reaping extra rewards like cash back on all their purchases, and the rewards seem to begin outweighing the risks. If you believe you have the discipline to use a college credit card the way it is intended to be used, than you may wish to consider applying for one.
Things to look for
If you have decided that the rewards are greater than the risks and you would like to try and find a card that is right for you, there are a few features you will want to try and get on your card.
1) No Annual Fee – Unless the interest rates are too good to pass up, or the rewards make a card with an annual fee worth having, try to find one without.
2) Low APR – The lower the interest rate you can find the better off you will be, especially if you intend to use the card primarily for emergencies
3) Useful Rewards – It is always nice to get something back and even more so when it is something you can actually use. Cash back is one of the best rewards options, as it is always good to have a little extra cash.
Hopefully, you’ll heed the above advice and cautions in order to make your experience with a college credit card a pleasant one.
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