Categories
credit credit card credit score

The Good, the Bad, the Truths That Fuel Your Student Credit Card Debt

A Credit Card has an intangible connection to the place of a personal one. A student credit card can be used around the house, handy for purchasing things overseas (where credit card use is necessary), and an important element in buying a new bicycle or a big air-conditioned home for your family. The most obvious benefit of a student credit card is the ability to acquire a snowball’s edge by exercising financial responsibility and paying off your existing debts in a manner that doesn’t lead to either a hard landing on your financial counselor’s tongue or despair on your lips.

The only possible con for most students who are newly enrolled at an accredited private school are the ones who go to them with a clean slate. The vast majority of college life has come to this for the student and he isn’t necessarily the exception.

The fact that your credit score is so important to a student’s financial management is the first indication of whether or not you’re a good student credit card issuer.

Creditors on college campuses are doing their best to make sure there aren’t any in the first place. Their policy is simple: Every time you make a deposit toward a credit card or loan, the student gets the right to withhold that amount of money – no matter how you see fit.

At the same time, the financial industry is doing its best to increase the number of creditors on college campuses to prevent an overall decrease in credit scores. Even three years ago, there were enough national accounts to elect to withhold the principal from any student making over 2,000 points. Of course, as we so enjoy through our lives, the temptation is to go for it.

There was an industry standard when we got our student credit card, and we’re not the only ones who’ve fallen victim. The College Fix reported that so many people were losing their student credit cards because this practice was linked to increased delinquency rates. According to the CardMiles.com report, more than a third of high school seniors reported a grade-point understating loan and credit cards bills as the cause of delinquency.

After all, we live in a times when a teen can be the catalyst of a whole new generation of financial stress and it seems as if our teens view themselves as the scapegoat for anybody’s problems. Over-confidence in our own ability to control our spending is the ultimate cause of the problems we end up with in our lives. So, too much responsibility, too much money, and a tendency to over-spend and high borrowing costs end up leading to an easily distracted teen with only limited opportunities for financial freedom.

There has to be a much better way out, so we’re going to have to see it as a must have, and the answer must be a student credit card. If you’re turned down for credit, it’s your credit card company jobber who has to decide if you are a good student or a bad one. At the urging of employers, banks and other financial institutions, that student credit card company gets a financial responsibility counselor to help them create a student credit card that can be the start of a much-needed rebuilding program.

You see, when all is said and done the way it is supposed to be used, a student credit card has two primary functions. The first one is simply to be an effective substitute for money you borrow from your parents, and the second one is to provide your parents with the chance to borrow money, put money in your bank account, and get loans on any or almost any car or truck (assuming you can afford it).

So basically, if you love finances, you might consider getting a student credit card instead of you. You can borrow money so that you can have an excuse to not only have fun, but to have the energy to get back out of debt. And though you might not take the car on that weekend drive to school, you can still jack up your rates by spending a bunch of money on an old, scratched up, and stolen model car.

For now anyway. If you fall victim to any of the other problems listed above, and you feel like you deserve some breathing room and a sense of responsibility, consider taking your credit card debt to the bank and negotiate for the less expensive goods. And if you fall short you’ll be the first one up for a long time to come.

As always, good luck to you all, has being a student credit card really helped you? So glad you took the time to read our wonderful post-credit-card-debt column. Here’s to years of good, fruitful thinking.