Student credit cards can be a quick and easy solution to an unexpected cash crunch. Lets say you work at a local hot-dog stand on weekends to help make ends meet. But the boss ran into a little gambling problem and couldn't pay you this week. But you bought a case of beer for the weekend and your last text book will finally be in at the bookstore on Monday (only a month late). This is an excellent situation to put a student credit card to use. You know you need the book, you know that your boss will have the money next week, and you'll be able to pay off the debt easily. This is a great situation to use a credit card as a student.



Now lets say that horror of horrors the hot-dog stand job falls through. Now you're in a serious bind. Not only are you short on cash, you've got no new cash coming in, perhaps for a long time. In a case like this, for those who can, it is time to call on the bank of Mom and Dad.

Now I should perhaps explain what the Bank of Mom and Dad is supposed to be. Well it is basically just what it says: Hitting up your parents for a low/no interest loan to see you through a hard time. Now of course not everyone has this background support. In that case, you can think of the Bank of M&D as being any low/no interest source of funds you can find (real banks, line of credit, scholarships/bursaries). The basic principal remains the same.

In a situation where you are going to need money for a longer period of time use money that costs you the least to borrow. Typical credit cards, especially for students, start at 19% and go higher. These days, if you qualify, a line of credit or a personal bank loan can be in the 6% range. There are many scholarships and hardship bursaries available on every campus, often from multiple sources (student union, your department, the university, private sources).

Regardless of whom you are or what you are studying, you need to take care of your finances while you are a student. You will most likely end up in a situation where your money runs out and you need to pay for something essential like food. When it happens to you, calmly size up the situation and decide which route is best for you at that moment: a quick fix with your student credit card or a longer term solution with a low or no cost loan from the Bank of Mom and Dad (or similar sources).