Healthy credit is an important part of coming of age in today’s America. A healthy credit score will go a long way in determining the kinds of opportunities you can access – such as owning a home. Thankfully, there are several ways one can go about systematically building credit and a healthy credit score.
One effective way to build healthy credit is through a healthy management of credit card spending and repayment. After all, credit cards are – for all intents and purposes – unsecured loans. Similar to having students work summer jobs and open their own bank accounts so they can learn and begin practicing healthy financial habits like saving and budgeting, giving students student credit cards is a good way to help them build their credit scores.
Available Student Credit Cards Options
Much like the many savings options available for students, there are also lots of opportunities available for those needing credit cards to help build their credit scores. For starters, many of the credit card options for students that are available are specially designed for students who have no credit history. Within that category of options, there is the opportunity for students to enjoy benefits and rewards – including cash backs – while they build their credit.
The Many Benefits for Students Who Use A Credit Card
In addition to the rewards that come with the various credit card options available for students (like cash back) and the ability to start building a positive credit history, there are other benefits that students can expect to enjoy from getting their very own card. These benefits are mostly personal, and include the following:
– Online shopping
The average student today is super tech-savvy and they are more likely to purchase items online than their parents because they enjoy the convenience of online shopping. By having their very own cards, students are able to comfortably shop around from the privacy of their own homes.
– Available credit when cash is limited
While it is important for students to manage their cards and spending habits, the whole purpose of a credit card is to be able to enjoy some extra wiggle room while waiting for cash to come in. For example, if a student is going to college and working part-time and will get paid at the end of the week but needs an item for school for a mid-week class, they can use their card to purchase the needed item. In this regard, a card can prove to be a lifesaver. The same principle can be applied to bills that need to be paid.
The Freedom to Spend and Being Responsible
Yes, student credit cards give students more spending power as well as help them build their credit rating as they build their future. However, a credit card is never to be used in a willy-nilly fashion. Instead, students should ensure that they are not charging too many items to their cards or charging items to the card that they truly cannot afford. It is always important to spend within one’s budget as any money charged to a card must be repaid.