If My College Student Getting a credit card?

If My College Student Getting a credit card? -

It might feel like summer is just beginning, but before you know schools throughout the country will be back in session. Many colleges begin in August, especially for freshmen who will attend the orientation, so it's a good idea for students and parents prepare for that first year away from home to start as soon as possible . While you enjoy the store sales on games of double sheets and decorations awesome dorm, there are some other things you and your student should consider -. One of the most important being the finances

So far, it is likely that each time your student needs to pay for something, you simply put the money or slipped your own card. Some teenagers have jobs and bank accounts, but many rely on their parents to spend money and figure they'll take care of all the major expenses that arise. With your student away from home, whether the drive of an hour or a plane trip cross country, chances are you want both a way for them to have quick and easy access to 'money. It is also a good idea to start building credit for the future, leading to the question most parents will face - If your student to get a credit card

Why your student gets a credit card

one of the main reasons for a student to get a credit card is the ability to start to build good credit to its future. Pay the monthly statement in full and on time will establish and build a solid credit history, which will be useful on the road when it comes to buying a car, renting a nice apartment or take loans. Credit cards are great teaching tools, as well, and can be used to help your young adult develop smart financial habits they will carry into adulthood. Overlooking the monthly statement together can be a great way to bond while instilling valuable financial knowledge, and many credit cards also offer an overview of the credit cardholder, which can give your student a lesson on what credit scores are how they can change. A credit card can also provide peace of mind for parents and students, if a medical emergency crop or they need to spend more on books than you anticipated. Finally, many of the best credit cards offer rewards in the form of points, miles or cash back where students will be sure to appreciate.

It is important to realize that a credit card can also pose potential dangers to students and their parents, if not used properly. While it can be good for your student to have a card around in an emergency, they must understand that there is not a blank check. Make sure they know that the card should not be used to cover anything and everything, and the balance must be paid on time each month to avoid accumulating interest and late fees. Discuss the differences between the time it is acceptable to use the card and when it is not - for example, to pay for school supplies needed compared to going on a shopping spree at the mall. Determine how the balance will be paid each month; your student will get a part time job, use their savings or you be covering? (If the latter is the case, you might consider a prepaid card, but it should be noted that this option will not allow your child to build a credit history.) You can also help your student to discussing the negative consequences debt and how it can affect their credit and their future.

Which credit cards are the best options for my student?

As there are some credit card options available, it is best for your student to apply for a student credit because these cards are designed for their age group. We detailed the main student credit card options to help you find the best fit.

The Discover Student card is an incredible asset for any student. Not only offering 5% cash back on purchases in categories that rotate every quarter and 1% cash back on all other purchases, but at the end of their first year, all earned cash back is automatically doubled. The rewards can be deposited into their bank account or Discover card account, or they can be converted into gift cards for brand names of the partners on the Discover website. There is a 0% purchase APR for the first six months, which allows students to new a little leeway credit cards to achieve balance without immediate consequences. Free FICO scores help them learn about their credit and watch it grow, and FreezeIt / off switch prevents new purchases, cash advances and balance transfers in case the card is moved.

Another great option for students is Discover card Chrome , which also offers six month 0% purchase APR and double your money earned back to end of the first year. This card allows your student to earn 2% cash back on up to $ 1,000 of combined purchases at restaurants and gas stations each quarter and 1% cash back on all other purchases. And, of course, it also provides free FICO scores and FreezeIt function to prevent the card from being tampered with if it disappears. In addition to being able to redeem your cash back to gift cards or deposit it in your bank account or Discover card they can use to pay for Amazon.com purchases - that savvy students could use to help offset the cost of books or other supplies.

Parents who want to help their students learn and build good credit will appreciate Rewards Capital One Journey Student of . The cardholder earns 1% cash back on all purchases, as well as a 25% bonus on the cash back earned each month the bill is paid on time. This gives your students an incentive to make timely payments, and they can choose a monthly due date that works for them to make payments is easy. As a bonus, there is not a limit on the amount of cash back can be earned and rewards never expire. There is no annual fee to worry about, but there is a variable purchase APR of 19.8%, so make sure your student is aware of the consequences of late payments. They also get free access to their credit score and can learn how decisions affect the daily using CapitalOne Credit Tracker online tool.

Students using the Citi ThankYou Preferred Card for College Students (a NextAdvisor seller) can earn two points per $ 1 spent on dining and entertainment, a point per $ 1 spent elsewhere and a 2500 bonus points if they spend $ 500 during the first three months of ownership of the card. With the rate books cost these days, these bonus points will probably win after their first trip to the campus bookstore! Points do not expire and can be used for everything rewards and gift cards for travel cash. There is no annual fee, and cardholders can enjoy 0% purchase APR for the first seven months.

If your student plans to study abroad, Discover Student, Chrome and discover the Citi ThankYou Preferred Card for College students are good choices because they have chip technology, which is the norm in many countries abroad nowadays.

It is difficult to say goodbye and watch your children become adults, but make sure they are financially prepared can help make the transition easier. Want to learn more about credit cards available for your student? Visit our credit card section for in-depth reviews of each card and a glance comparison charts.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.