Credit Cards - Student Saver Or Bad Omen

There are endless horror stories and advice articles going out trying to spread the word that a university student should not get a credit card. However it is not necessarily the truth. There is undoubtedly a risk, if your child has a habit of using up phone credit or spending all of their allowance on clothes and then begging for more so they can go out, it is indeed most likely a bad idea to organise a credit card.

However, if these problems are alien to you it is likely to be best for you to ignore the negative feedback. There are many real advantages to having a credit card while at university, and it is likely they will end up getting a card anyway. Recent studies proved that a staggering 92% of Uni students have had more than two credit cards during a four year study course.

More examples of positive credit card usage are beginning a credit history. If your child begins building a positive credit and repayment record it will assist them no end in the future. They will also learn about credit, its traps and how to avoid debt in a safer environment. If they are unable to buy that XBOX game it will hit them a lot less than missing out of food or electricity.

Another very important lesson it teaches is how to budget. Most students would have a very hard time telling you where their money goes. This is because most of them use cash, and tracking cash is a nightmare when you compare it to a nice neat credit statement that clearly shows the true cost of eating out instead of cooking for example.

Surprising though it may be, it is usually easier to obtain a credit card when you are in university then when you are not. Banks offer student credit cards that are tailored, and do not have as high requirements to meet. Once you have a credit history with a bank, it will be easy to continue.

And of course, although nobody likes to think of it, credit cards can help in a financial emergency. If you need to pay for your car to be picked up and repaired, if you are stuck and need to get home etc.

In all, if you are confident they can be sensible; a credit card can be a real asset to a student's wallet!

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