You see them walking around campuses with their big smiles and clipboards- people trying to get students to open credit card accounts. They lure students with shiny free gifts and before you know it, your child has just gotten his or her first credit card. Aside from being sad that your baby is finally growing up, you worry whether giving a student a credit card is really a good idea.
The truth is, credit card companies flock to students like fish to water because they think these youngsters are easily influenced. Some students are not financially responsible and these companies know it. When a student makes a bad choice with a credit card, the credit card company benefits.
Responsible use of credit cards, no matter what age the card holder, helps to build credit. Credit is necessary to qualify for auto loans, home mortgages, and, in some states, the best auto insurance rates. If they are able to handle the responsibility, students should get a credit card for this reason.
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