Is A Credit Card For New College Students A Good Idea?

Is A Credit Card For New College Students A Good Idea?

Making the decision to sign up for a credit card isn’t always an easy one to make. While the only way that we can build up our credit is by adopting a card, many of us are hesitant toward the financial responsibility that comes along with having one. Credit cards can often be an ‘easy way out’ when we are faced with financial difficulties. When consumers don’t have enough cash they often turn to their credit cards assuming that they will be able to make the payment later on. Unfortunately, our education system does not require credit card or finance training (if this is available in school it is often an elective class.)

So, where does that put young adults and their finances? Does getting a credit card or multiple cards put us at risk? Regardless of whom the cardholder is it’s extremely important that every user takes the time to look into the card issuer, card features and any penalties involved in having one. With knowledge of interest rates and benefits as well as one’s own income we can come to a conclusion as to whether or not we should do business with just any company. There are many card issuers, such as Capital One, that are easy to obtain. These are suitable for college students as they do not require a high credit score and they also come with a low credit limit.

It is not at the fault of the people that students and adults struggle in balancing their finances. When it comes down to it, education does not teach us how to build, manage and invest our capital. We are not taught how to buy a home or invest in stocks. School does not teach us how to develop our individuality so that we, furthermore, can contribute to society in a way that is innovative and not systematic. It’s a great idea for anyone to obtain a credit card from the right issuer to build their credit score as long as they have the knowledge, discipline and an education to do so.

Being that any individual can apply for credit and put themselves at risk, it appears that we have not done the best in preparing young adults for the real world and it comes down to the basis of our education. It’s important for each consumer to look into credit card companies to identify whether or not they are reputable, fair and secure to do business with. If we had the information to compare and contrast companies and if the people knew what to look for when it came to managing their finances it would likely diminish a great deal of debt that stems from credit cards and everyday purchases.

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