While credit cards can be a valuable assistance to college students who have limited funds to live off of, they can also pose to be a financial pitfall for many college students. Before college students enter college, it is helpful if parents take the time to explain to their students how credit cards work. They can seem like free money to young adults who have never had a credit card before and suddenly have access to several of them. When parents take the time to teach their college students to be responsible with spending and how much they charge to credit cards, this can be a lasting benefit to the students that will help to keep them from accumulating massive amounts of credit card debt.
Accumulating credit card debt has been a common problem for hundreds of thousands of young adults who are in college. Many credit card companies will send pre-approved cards to individuals in their freshmen and sophomore years in college. The student, in many cases, simply needs to activate the card and it is ready to be used. If a student goes clothing shopping, shopping for electronics, video games, or spends a large amount of money eating out or at clubs, credit card debt begins rapidly piling up and this can hurt the student's financial situation for years to come. What begins as actions of immediate gratification can turn into a poor credit rating and bills that are unable to be paid.
Credit cards for college students can be a benefit if they are used responsibly. It is always helpful if a student takes the time to sit down and speak to a parent, extended relative, mentor, or college advisor about using credit cards. An older and more experienced adult will be able to offer helpful information to the student about using credit cards and what potential outcomes can be if the card is not used responsibly. Students who are encouraged to cut back on spending and get a part time job to help finance their needs will benefit in the future by reducing the amount of credit card debt he or she accumulates.
Beginning life after college will be much less stressful if the student has maintained a controlled credit card debt or no debt at all. Credit cards are handy when money out of pocket is not available and the cards can help college students to purchase food and gas and pay for utility bills. Using credit cards in excess can result in having long term negative consequences for the college student.
----------------------------------------------------
Hunter Riley is an editor at creditcardrates.com, a website that will help you find the best credit cards to match your lifestyle. http://www.creditcardrates.com is dedicated to finding you the lowest credit card rates around.
EasyPublish this article: http://submityourarticle.com/articles/easypublish.php?art_id=259922