Why College Students Should Get Credit Cards
College students often face financial decisions that can have a lasting impact on their futures. Such decisions can range from whether to take out a loan to help pay for school or to splurge on the latest technology craze.
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Another big decision that comes up for college students is credit cards: should they get one or not?
Credit cards can help college students become more financially responsible and build their credit. However, if not used wisely, they can also lead to bad spending habits and debt.
In this article, we will highlight why college students can benefit from credit cards and using them responsibly.
1. Building Credit History
Building a good credit score is essential for many aspects of adult life, such as getting approved for a car loan, renting an apartment, or even applying for some jobs. By getting a credit card and using it responsibly, such as making on-time payments and keeping the balance low, college students can start building a positive credit history early. This can set them up for more post-college financial freedom.
2. Emergency Expenses
A credit card can provide college students with a financial safety net away from home in case of emergencies. Whether it's a sudden car repair, unexpected medical expense, or a last-minute plane ticket home, having access to credit can help students cover these unexpected or necessary expenses. Having this flexibility when they may not have the necessary funds in their bank accounts can provide college students with extra peace of mind. That said, it's important that they use credit cards responsibly for emergencies. And of course, they will want to pay off any balances as soon as possible to avoid accruing unnecessary debt.
3. Rewards and Benefits
Many credit cards offer rewards such as cash back, travel points, and other perks for every dollar you spend. College students can take advantage of these credit card rewards to stretch their budget further. For example, they can earn cash back on your everyday purchases like groceries or gas, which can help offset some of their expenses. Plus, some credit cards offer benefits like purchase protection, extended warranties, and travel insurance – all of which can provide more value and peace of mind.
4. Financial Education
Using a credit card responsibly can help college students develop valuable financial skills. By managing credit card payments, tracking spending, and budgeting well, they will learn traits that will serve them well long after graduation. Knowing how to use credit responsibly as a young adult can help set college students up for financial success.
5. College Student-Friendly Options
There are credit card options specifically designed for college students that cater to their needs and circumstances. Such cards often have lower credit limits, no annual fees, and may offer rewards or benefits tailored to students, including cash back on dining or school supplies.
Final Thoughts
College students should consider getting a credit card to build their credit history, be prepared for emergencies, and learn valuable financial skills. While a credit card comes with responsibility and requires discipline, the potential benefits outweigh the risks (when used properly). By using credit cards wisely and making on-time payments, college students can start building a financial foundation that will benefit them in the long run.
Get Started with a Visa Classic Card from Peak
Our Visa Classic credit card is ideal for college students. It’s the perfect card for those who need to build their credit history and purchasing power. With no annual fees and low introductory purchase APR*, you can focus on building a financial foundation for the future! Apply online, call (800) 258-3115, or visit your local branch today.
* APR = Annual Percentage Rate. All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on creditworthiness, qualifications, and account type.
Method of Balance Computation: Average Daily Balance (including current purchases)
Grace Period: 21 days
Minimum Payment: 3% of the balance or minimum $25 whichever is greater.
Late Payment Fee: Payments more than 10 days past due will be charged $20.00.
Rewards details and restrictions subject to change.
Foreign Transaction Fee - Up to 2% of the U.S. dollar amount of the foreign transaction or $0.25 whichever is greater.
The fixed introductory rate applies to new purchases posted to a new consumer Visa® credit card account for 180 days from the account open date. Your rate for purchases and unpaid balances after the 180-day introductory period will be adjusted to non-introductory rates. The fixed introductory rate does not apply to the Share Secured Visa Credit Card. Please review the terms and conditions of the account for details.
Rates are subject to change quarterly. The index is The Wall Street Journal Western Edition Prime Rate as of: February 28; May 31; August 31; November 30 of each calendar year, plus the margin. Rates are subject to change: March 10; June 10; September 10; and December 10 of each calendar year. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and account type.
For full printable disclosure Click here. A printable card agreement can be found here