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Wednesday, November 11, 2015

Credit cards for students: A simple guide for parents

Student credit
Wise use of credit builds credibility
We tend to think that credit cards and our children are two incompatible phenomena. But let us not forget that right after having obtained a first credit card we tended to make such foolish mistakes that we would never repeat in our adult life. So why are we taking this chance from our children - a chance to get to know how credit cards operate?

Credit cards have both: advantages and disadvantages. It goes without saying that they are more secure than cash. Moreover, banks provide customers with numerous offers and discounts. But if a person does not pay enough attention to the credit card - it may lead to enormous troubles. Therefore it is quite momentous to teach students on practice how to cope with credit card and what they may serve for.

Tracking down all expenses

No matter how worried you will be for the first time - that a child might lose a card or spend all the funds at one time while visiting a shopping mall - do not take it too close to the heart. First, this will be completely useless to put substantial funds on the bank account. Go with small amounts for a start.

Later on, increase the funds as you will observe responsibility increase in your child’s behaviour. Furthermore, online applications have been designed for guarantor and sponsors for  tracking down the expenses.  This way, you will obtain all everyday information on what, where, how much and when your child spent this money.

Sunny days vs. rainy days

Do you have an emergency account or at least a fund that you keep only for unpredicted urgent occasions? How long have you been sticking up to it? If an answer is positive, you definitely know how crucial it is sometimes to have such additional funds.

Do not forget that your children may also have anything popped up at any time. Remind them of having such a fund and if they choose a decent bank, it will do it a priori for the customers.

Credit score is never too early to be set right

The earlier you start thinking of your kid’s personal credit score or history, the more successful and better prepared your child will appear to be among all freshmen. It will also ease a process of them to obtain most kinds of loans even at the bank.

Student credit scores
Credit score affects loan rates
Credit cards are widely used all over the world and actually it is one of the best financial options to start with. There are many special offers for students which help their parents to monitor and keep control over the kid’s spending. Just let your kid learn to be a responsible customer as he or she will definitely use various financial products in the future, including payday loans online offered by Speedy Loan Search company . 

Remember one simple thing: this is your child and until he or she grows up, the responsibility is solely on your shoulders. Do not slip the fact that they still need your guidance and experience sharing otherwise they will learn by themselves but with huge mistakes. Nobody wants that, right? 

Images: 1.  401(k) 2012,Flickr "Credit",  CC BY-SA 2.0 2. Pne/Wikipedia, "credit score chart"; CC By 2.0