The Finance Forums

The Finance Forums (http://www.thefinanceforums.com/index.php)
-   Credit Cards (http://www.thefinanceforums.com/forumdisplay.php?f=5)
-   -   Credit Card for Student (http://www.thefinanceforums.com/showthread.php?t=1615)

Dragoncrester 01-09-2012 03:20 PM

Re: Credit Card for Student
 
My issue is i have two jobs plus a full time student and since the creditors our so good in getting my credit because of paying on time and keeping my credit to debt ratio down they gave me more and more. Now i have payments to credit cards i can no longer afford and i am starting to see late payments of two or three days late.

FabulousWoman 02-26-2012 10:15 PM

Re: Credit Card for Student
 
Money on a credit cards is never yours. Students should clearly understand that before getting their first card. It can be so easy to get into debt for young adults if they don't have money management experience. Parents can play big role in child's financial education, teach basic financial knowledge.

littleroc 02-27-2012 11:59 AM

Re: Credit Card for Student
 
Plus shouldn't you have a steady job with an income if your going to dabble in credit cards. Students shouldn't get credit cards, their in school for cripes sake! They don't have a steady income yet.

TenBestCards 10-14-2012 06:50 PM

Re: Credit Card for Student
 
I remember getting into bad debt while being in college with credit cards also. It's just really hard to avoid if you're busy studying and having fun and charging everything seems real easy. I had to get my folks to bail me out of debt a few times. If I didn't have that option things could have gone real bad. If you really want to build some credit history I would agree with Secured credit cards.
Prepaid Cards do nothing for your credit history and are really just for those who don't qualify for anything else. Good luck!

mkenneth 11-30-2012 02:10 AM

Re: Credit Card for Student
 
I think for a student it would be an ideal solution to get a credit card which offers 0 annual fee and the lowest interest rate. Barclaycard use this credit card.

thesimplemoneyblog 11-30-2012 05:58 PM

Re: Credit Card for Student
 
Don't mean to duplicate posts, but my response on http://www.thefinanceforums.com/very...card-7561.html has some comments that relate directly to this post.

I got my first credit card in my first year of college. There were offers around every corner (something quite disgusting for college students who typically have little wherewithal or knowledge on how to properly manage a credit card), so it was (and is) important to pick a credit card that is right for your lifestyle whether that be mileage benefits, cash rewards, or other rewards programs. At the time, I didn't even have to provide any documentation showing what my income was in order to determine how much credit I could qualify for. Why is that okay? From the get-go, many companies are setting you up for failure. Why wouldn't a college student with little income per month not say 'sure, I'll take $2,000 of credit!'? 'It's okay, I'll just pay it back when I get that great job'...

With that said, there are lots of good cards available (Chase Freedom card can be good for cash rewards). Try going to Bankrate.com to evaluate different credit card offers depending on your needs and if you want cash rewards or mileage from major airlines.
Pay the credit card in full EVERY month, so you don't carry a balance. Otherwise, the interest that most of the cards charge will far surpass any reward/benefit you would have otherwise received.

Be careful when using credit, and carefully consider your ability to afford what you purchase, as it is too easy to get trapped by spending too much since access to credit can be very easy, but it most assuredly is not cheap.

Use a program like Quicken, Mint.com, Yodlee.com, etc. to get a good idea of what you really can afford each month, and then pay the card in full at the end of the month. The hardest thing about having a credit card is learning the discipline to not overextend yourself.

nimbus 03-08-2013 12:53 PM

Re: Credit Card for Student
 
Since you are so young you should go easy on credit cards. If you decide to get one to build credit, be very responsible. Don't go overboard on the spending and as far as possible pay off most of your debts in full. Trust me you don't want to get into the debt trap at this age. There are various types of student credit cards.

Good luck.

jeffnev 02-21-2014 06:51 AM

Re: Credit Card for Student
 
Hi,

You could also have a look at some prepaid credit cards, if you are worried about finances. Prepaid credit cards only allow you to spend what you have put on them, enabling you to better manage your finances. There are many different prepaid credit card suppliers including Cashplus.

jeffnev 04-23-2014 12:12 PM

Re: Credit Card for Student
 
Oh I forgot to mention, debit cards are the best option for young people :)

ed_p 04-23-2014 12:43 PM

Re: Credit Card for Student
 
Quote:

Originally Posted by AllThingsPersonalFinance (Post 7931)
Despite the advice that you get that sees no fault in getting a credit card to build your credit history, at 18, I do not believe this is a good idea for you.

If you want a credit card, get a secured card. This is a card whose limit is secured by an amount of money that you deposit into a savings account with the credit issuer. After 6 months or so, you can ask for the card to be converted to a regular card that does not have the requirement for a deposit to be made in order to grant a balance limit.

There is more to learn at 18 than how to build a credit rating - getting and keeping a good job, furthering your education, picking good friends, balancing personal and professional needs, learning to drive safely, etc. You get the idea.

When you see yourself two years from buying your first home, then start working on your credit.

I totally agree, I never would have got a credit card when I was 18. Yes it does build up your credit rating but is that something you need right now anyway?

I'v seen so many people in debt for such a long time because of credit cards. If you don't have a secure job I would stay clear. The reason not many young people have them is because young people find them selves in different situations every year, we're not settled. Unsettled people with credit cards get into debt!

Debit cards are perfect for young people (and old people).. or if you really want a creditcard, why not go for a Mastercard prepaid credit card as Jeff suggested? You can use them everywhere but you have control over the money. Lots of companies like NETELLER supply them.

Again, if you are sensible and really want a credit card then don't let us stop you. Just be careful!

Therk1961 04-28-2014 07:00 PM

Re: Credit Card for Student
 
I believe one of the easy and consistent ways to make a positive impact on your credit score is to have the credit card long term, make small purchases and consistently pay off on time. A long track record of responsive repayment looks better than no history.

William_Sze 05-08-2015 11:25 AM

Re: Credit Card for Student
 
yes, i think its necessary for you, there is many ways to use credit card. my friend provide his two sons they are also sturdent and the hole family using credit card and its from Alliance Bankcard Services

jplifeleadership 05-27-2015 07:25 AM

Re: Credit Card for Student
 
Remember. The bank makes money when you are in debt. Credit cards may be useful in certain situations. (i.e., online banking) but there are other alternatives such as a visaDebit or something similar. It uses your banking balance while the utilization similar to a credit card.

EllieFraser 05-13-2016 06:56 AM

Re: Credit Card for Student
 
You can really get some great cards available for students.

AgentProv 06-30-2016 04:43 PM

Re: Credit Card for Student
 
Yep - never use it for credit - just for building credit rating.


All times are GMT -4. The time now is 11:28 PM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.