4 reasons why college students need credit card

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Credit card debt is a big problem and every year millions of people mismanage their card. Interest rates increase, payments are delayed and credit worthiness is destroyed. While credit card debt can be devastating from a financial point of view, credit plays an important role in our lives. With a credit card, carrying money around is no longer necessary. If your bank account has no credit, your debit card will be unusable. However, with a credit card, one can make your purchases and your free time safely. This also guarantees the security of the money. Online transactions can also be done with your credit card.

There are several reasons why a college student should learn how to use a credit card. These range from taking care of an emergency to learning to budget and act responsibly. Below we take a look at why every college student must learn and understand why they need to use a credit card.

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  1. Establish a credit score – We need to have a credit score to buy a house or a car. Despite all the negative consequences of credit card debt, most college students need a credit card. If for no other reason than at very least to create a credit history one must have a credit card. You need a loan to establish a credit score. Therefore one must start to use a card as responsibly as possible from as young an age as possible.
  2. Uses in an emergency – Credit card are perfect for an emergency. Most students do not have emergency money worth mentioning sitting in a bank account. Therefore, it is important to have money in an emergency. You always have the option of a using a personal loan in the event of an emergency but the interest rates can vary depending on your credit and the lender. As a parent, it is a matter of peace of mind knowing that your son or daughter have a card when they get stuck in a car accident or when they need to get home in an emergency.
  3. Earn while you spend – Another reason for a college credit card is to get cash, rewards or points for your purchases. While the benefits of a student credit card may take a while, a student will appreciate the rewards one can get once they have earned enough rewards to redeem them for something big.
  4. Learn responsible spending – If you are a student with a credit card, it is important to know that this rite of passage into adulthood includes the responsibility of the adults. Now you have bills to pay and, with the possible exception of a mobile phone bill, the student credit card bills you receive in college will likely be your first experience in planning payments and budgeting.

However, with a credit card, one can make your purchases and your free time safely. This also guarantees the security of the money. Online transactions can also be done with your credit card. To use a credit card, you should think about the due date of your payment and establish a budget to make sure you have the funds you need to pay at least the minimum payment per month. It helps one to act responsibly.