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[H355]High School Student Credit Card

by Max Anderson, Max

It used to be that parents didn't find themselves considering credit cards for their children until those children went off to college, but nowadays a high school student credit card might be more appropriate. If you have a high school student at home and you've been wondering if a credit card might be a good tool for them, there are three things you need to keep in mind.

1. It's a "Minor" Issue

If your child waits till college to get a credit card, chances are it's going to be in his or her name only -- meaning your credit is off the hook should they mismanage the card or abuse their credit. If, however, your child is a minor (as most high school students are) then your child is going to need to be using one of your credit cards as a secondary user. This means your credit is on the line, not theirs.

Minors can't get their own cards, so you'll be towing the line if your child is under 18 with a credit card in their pocket. If your child isn't responsible enough to manage the card wisely, you'll end up paying for their mistakes, and those mistakes can cost big time.

2. It's All About Boundaries

If you do decide to let your child have a high school student credit card, you need to set up boundaries the moment that card is issued. What can the card be used for? How much is your child allowed to spend? Should he or she contact you for permission prior to using the card?

By setting up clear boundaries you can avoid future headaches (and unpleasant statement surprises). If you simply say "this card is only for emergencies" your child might not understand. For all you know, that cute coat in the mall could be an emergency to a high schools student. Explain exactly what constitutes an emergency and set up firm rules, making sure your child understands what the consequences will be if those rules are broken.

3. Go Over the Statements Together

A high school student credit card can be a great way to teach your child financial responsibility, but for that to happen your child has to be involved in paying the bill. When the credit card statements come in each month, go over them with your child. If there are frivolous charges, discuss them and talk about responsible credit card spending.

Let your child watch you write the check to the credit card company and make sure they pay you for their share of the bill. This will teach them that plastic needs to be used just as responsibly as cash.

While a credit card isn't right for every high school student, there are definitely some who can benefit from them. If yours is one of them, by all means get them started on the road to a healthy credit future and let them learn from the use of a high school student credit card.

Going to college for the first time can be a very overwhelming experience. Living in a new environment, making new friends, buying your books, and this is all before you start going to class! With all these new pressures, also comes the responsibility that will last a lifetime; money management. Because you will be concentrating most of your efforts on schooling, credit cards might be a wise financial option. More specifically, you might consider a student credit card, as your first credit card. Student credit cards are a sound choice for those looking to establish a credit history while not breaking the bank. Keep these things in mind when looking for a credit card.

Look For A Good Deal

Although it may be easy for you to secure a student credit card, it's not as easy to also get a good deal. Make sure you shop around before applying. Compare things like interest rates, whether or not the card carries an annual fee, and rewards. Remember to look at rewards and extra benefits with a skeptical eye, as nothing comes without a cost. Above all else, when you are looking for a new credit card, you must always read the terms and conditions. It's amazing how many people don't do this, and the end up paying dearly. Always read the terms and conditions, completely.

Low Annual Fees

If it's possible find a card with no-annual fee. These cards are very common, they just usually do not have as glamorous of a rewards program. If you must choose a card with an annual fee, make sure you know what that fee is, and when it is charged, you do not want to be caught with your pants down.

Student Credit Card Advantages

Buy now and pay later. Although this motto can get you into serious financial trouble, a modest and responsible approach to credit cards can provide substantial buying power and freedom.

The length of your credit history is a major factor in calculating your credit score and longer histories show lenders that you are a low-risk investment. The sooner you get your first credit card, the sooner you can establish a clean credit history.

Student Credit Card Disadvantages

A major drawback to obtaining your first credit card, is that you could possibly overextend yourself. Make timely payments and never spend more than you can afford. The ease of using a credit card can sometimes make it hard to stay within your limits, just remember that everything is going on your permanent financial record.
Along with this, remember that you will now have a financial obligation on a regular schedule and must think ahead as to how you will fulfill this reoccurring obligation.

Bottom Line

The student credit card can be a great stepping stone to a prosperous financial future. The bottom line – Shop around and read all the terms and conditions, don't abuse your credit, and make your payments on time. Follow this advice and you will be just fine.

Article Source : Student Jobs In Canada

About Author

Both Max Anderson & Claire Blake are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Max Anderson has sinced written about articles on various topics from Credit Card Offers, Credit Cards and Business Credit Cards. For more tips on , saving money and avoiding getting taken, check out the student credit card section at CreditCardTipsEtc. Max Anderson's top article generates over 49500 views. to your Favourites.

Claire Blake has sinced written about articles on various topics from Credit Cards, Student Credit Cards. Copyright 2008; Claire Blake. This article may be reprinted on the terms that it remains unchanged and the links stay active. Claire Blake has written numerous articles on credit management and is the. Claire Blake's top article generates over 880 views. to your Favourites.