The Case for College Students to Have Credit Cards

5856793551_2efa2e32af_mIncoming freshmen receive dozens of warnings before stepping foot onto their college campus for the first time:

Mom and dad caution them to not get carried away with extra curricular activities and instead focus on their grades.

Older siblings kindly suggest avoiding any beverage with the word “jungle” in the name.

Financial experts yell, scream and throw their arms in the air about avoiding credit cards.

While jungle juice should be avoided, there is actually a case for college students to sign up for a credit card. Here are three reasons why a credit card will set them up for a healthy financial future.

Find out the 3 reasons on US News

[Image taken from Flickr]

Posted in Credit Cards, US News' My Money Blog Tagged with: ,
13 comments on “The Case for College Students to Have Credit Cards
  1. While your credit score might not seem important now, someday it’ll determine what apartment you can rent, what loans you can take out, and whether or not you can buy a house. Having a good credit score in our society can really make life easier, and it’s often a good idea to start early.
    Alicia @ Monster Piggy Bank recently posted…Trying to stay under $100 per dayMy Profile

  2. Great article, Erin! It’s also important to have a credit card when traveling. Trying to rent a car or book a hotel room without one is a major hassle.
    Addison @ Cashville Skyline recently posted…Why Job Burnout No Longer Scares MeMy Profile

    • Broke Millennial says:

      Great point! I believe it hurts your credit score to rent a car with a debit card because they run a check. But I could be wrong.

  3. I got my first credit card in college- a Macy’s card with a $100 limit. I was stoked! Haha!
    Holly@ClubThrifty recently posted…Why Used Stuff is Better Than NewMy Profile

    • Broke Millennial says:

      Haha, that’s awesome. I started at 18 with a USAA credit card and I was terrified of using it for a full year.

  4. Great points Erin! I think my first card (at age 18) had a $500 limit, and that was no joke the only credit card I had until I was 29. If only I didn’t spend half of that time keeping a balance on it!
    Ryan @ Impersonal Finance recently posted…the right time to have childrenMy Profile

    • Broke Millennial says:

      We’re very similar. Mine was a $500 limit and I didn’t even think about asking for an increase until over a year out of college.

  5. Hi Erin, nice article with some good points. I agree that you should get a credit card early so that you can build up your credit score. Just make sure you have some self control and don’t spend what you can’t afford. I normally pay my balance off every month.

    • Broke Millennial says:

      Knowing yourself is key. People who think they might use it irresponsibly should certainly stay far away.

  6. Student loans do help establish credit, but since most students don’t begin making payments until after graduation the immediate impact is minimal. Credit card payments are due every month, so the payment history begins much earlier, and works better for building a history of positive payments.
    Kevin @ Credit Bureau Insider recently posted…Paying Off Student Loans Before Buying a HouseMy Profile

    • Broke Millennial says:

      Absolutely, but having a credit card also creates more types of credit thus improving your score. Plus, not all students have loans (I didn’t).

  7. Getting a credit card as early as possible is so important. The average age of your credit plays a role in your score.
    Edwin @ Cash Syndrome recently posted…Top Personal Finance Blog Posts From July 2014My Profile

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