Finance Tips: Should college students have credit cards?

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Debt is a big problem and I am sure everyone agrees on that premise. Look the countries which are entangled by debt. Their economic condition is awful. They like cannot live autonomously since they have obligations to pay to the creditors. But sometimes we cannot avoid debt especially when we are not a billionaire who has lots of money in the bank. We need credits to buy house, car, etc. But should everyone have credit cards? What about teens and college students?

Teenagers are allowed to have their own credit cards if they have turned 18. So, when these teenagers have reached the eligible age, credit card issuers often try to target them. The problem is the credit card issuers don’t want to know about the ability of these “kids.” When they enter college time there will be numerous credit offers that try to attract young customers by giving away free gifts.

The next problem is these young people will get their first credit card so it is very likely that they will be delinquent in using the cards as at that age, they tend to be “an outlaw.” But sometimes they are delinquent because they are not familiar with the credit cards. As a new user, they are supposed to have grasped the basic knowledge about the use of credit cards. What happens outside is these students don’t bother to read and understand the terms and condition or whatever you call it. The outcome is definitely debt.

So, considering the situation, do they still need credit cards? The answer is left to the parents. Parents can have their kids owning credit cards, but they should also educate them to use the cards wisely. Credit cards have so many advantages but once people are misusing it they could find hell. Learning how to use first credit card is easy. Just make sure you have understood everything about the policy issued by the issuers.

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