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Student Credit Cards – Pros and Cons

By plrprousers | November 1, 2008

PRO #1: Student credit cards give you the chance to build your credit early, just as is the case with actual student loans. These credit cards can be given to people that have no credit at the current point in time and through the use and then repayment on these particular credit cards, students can build up a certain amount of good credit that they can then use later on in life when they need to have good credit for something.

CON #1: Student credit cards are a temptation and just as with anything else in life that is a temptation, there are going to be some students that are good at handling it and some students that are bad at handling it. If you happen to be a student that does not have the discipline necessary to handle the responsibility of a credit card (i.e. the illusion of extra money), you might be better off without having one in the first place.

PRO #2: Student credit cards, just like student loans, have much better rates than their counterparts in other areas. The typical student credit card will function in a manner similar to a low interest rate credit card in this respect. Student credit cards are therefore easier to manage and easier to deal with if you happen to miss a payment and have interest charges apply to your standing balance.

CON #2: Student credit cards can provide a distraction to students that they do not need at that particular point in their life. With students going to university, many of them are away from home for the first time and for that reason do not have the advice and experience of their parents to fall back on when they get into tough times. If used incorrectly, student credit cards can get students into those tough times and once they in those times, there may be no escape.

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