| Every year, college freshman are bombared with | | | | the interest rate to an exhorbitant level afterward. |
| offers for student credit cards. Parents need to talk | | | | Always check out the interest rate that will apply after |
| about in talking about the responsibilities that go with | | | | the introductory period.Another pitfall to avoid is paying |
| having a credit card, before their son or daughter goes | | | | only the minimum payment each month. Often, the |
| off to college.I'm not suggesting that it's a bad idea for | | | | minimum 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 the | | | | principal. In that case, it may take decades to pay off |
| right card and use it carefully and prudently.The | | | | the balance. In fact, if no money goes toward the |
| benefits of a student credit card are clear. Parents | | | | principal, the balance will never be paid off!Many credit |
| won't need to be continually sending money and | | | | card companies offer the ability to manage the |
| students will be able to make normal purchases more | | | | account online. This is a very convenient feature. |
| easily. They will also be prepared for unforseen | | | | Students can check their balance or make payments |
| "emergencies." Moreover, since most credit cards | | | | from their checking account 24/7.This feature also |
| have a preset spending limit, parents can be sure that | | | | allows 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 low | | | | adds an extra margin of safety and reduces the |
| spending limit, since credit card companies are often | | | | chances that the student will get into trouble by |
| too liberal in the spending limits they assign to student | | | | over-using the credit card.Dr. Rubinstein is a practicing |
| credit cards.Parents may wish to have the student | | | | psychiatrist and infopreneur. |
| credit card used only for emergencies. In that case, this | | | | He helps people apply online for major credit cards |
| must be made quite clear to the student.Some credit | | | | and has a very high success rate. You can email him |
| card companies offer very low "teaser" rates in the | | | | at Dr. Rubinstein has over 100 web sites. To find out |
| beginning for a limited period of time and then jack up | | | | more about ways Dr. |