Everyone seems to have an opinion on whether or not college students should have a credit card. I’m firmly in the “Yes, they should” camp.
Why?
1. Learn some self-control – I’d love to be able to max out 5 credit cards and never have to see the bill. But that’s not reality. Get a credit card and force yourself to only buy what you would have with cash. It really shouldn’t be that hard. If you can’t, then yeah, credit isn’t something you should use.
2. Build a credit score – Credit scores, love ‘em or hate ‘em, are here to stay. Most of us at some point will end up applying for mortgage or car loan. A non-existent or poor credit score is only going to hurt you.
3. Get some rewards – There a few rewards cards out there marketed towards college students. Get a few bucks back on books, gasoline, and entertainment every month.
4. Better security – Lose a debit card and your entire checking account can be drained. A thief doesn’t even need your PIN because debit cards can be processed as “credit”. Have a credit card stolen and you haven’t lost any of your own money.
5. Convenient – It makes sense to carry around more than one form of payment. A debit card, credit card, and some cash ensures you’ll always have an accepted payment method.
I understand that some people make mistakes and get themselves into a ton of debt. That’s obviously bad. But don’t tell me I shouldn’t have a credit card just because other people don’t pay off their balance every month. And of course, no typical personal finance expert would ever say the real truth – graduating college with a few thousand in credit card debt isn’t the end of the world. Not a great situation to be in, but not devastating either.
