Student Credit Cards: Benefits and Dangers

Every year, college freshman are bombared withthe interest rate to an exhorbitant level afterward.
offers for student credit cards. Parents need to talkAlways check out the interest rate that will apply after
about in talking about the responsibilities that go withthe introductory period.Another pitfall to avoid is paying
having a credit card, before their son or daughter goesonly the minimum payment each month. Often, the
off to college.I'm not suggesting that it's a bad idea forminimum payment only covers the interest for that
college students to have their own credit card. Actually,month, and little or no money goes toward paying the
it has many benefits, but it is essential that they get theprincipal. In that case, it may take decades to pay off
right card and use it carefully and prudently.Thethe balance. In fact, if no money goes toward the
benefits of a student credit card are clear. Parentsprincipal, the balance will never be paid off!Many credit
won't need to be continually sending money andcard companies offer the ability to manage the
students will be able to make normal purchases moreaccount online. This is a very convenient feature.
easily. They will also be prepared for unforseenStudents can check their balance or make payments
"emergencies." Moreover, since most credit cardsfrom their checking account 24/7.This feature also
have a preset spending limit, parents can be sure thatallows parents to monitor the account, even from
spending will remain within a pretermined amount.thousands of miles away. This level of accountability
Parents should remember to request a relatively lowadds an extra margin of safety and reduces the
spending limit, since credit card companies are oftenchances that the student will get into trouble by
too liberal in the spending limits they assign to studentover-using the credit card.Dr. Rubinstein is a practicing
credit cards.Parents may wish to have the studentpsychiatrist and infopreneur.
credit card used only for emergencies. In that case, thisHe helps people apply online for major credit cards
must be made quite clear to the student.Some creditand has a very high success rate. You can email him
card companies offer very low "teaser" rates in theat Dr. Rubinstein has over 100 web sites. To find out
beginning for a limited period of time and then jack upmore about ways Dr.