Extra Credit: The Benefits of Credit Cards for Students, Young Graduates

posted 5/23/2013 in General

Your child has just graduated from high school this May, and in August or September they will set off into a brand new world full of excitement. They'll need the right clothes to fit in at school, the right textbooks for their classes, and the right.credit card? Yes, it may be a good idea for your new college student to head to campus equipped with a credit card. However, it must be the right kind of credit card, and they have to be taught how to use the card responsibly. 

When used responsibly, credit cards are a great resource for college students
Sure, there is the possible pitfall of having your child rack up credit card debt in addition to the debt they will undoubtedly have when they graduate. So why risk it? Here are a few reasons:
  • Responsibility- having a credit card can teach your child how to spend money wisely. They need to realize a card, like most great things in life, is not "free money"; it does need to be paid back, a great life lesson.
  • Build credit- paying off the balance of the card every month allows a good credit score to be established before they even leave college. This can help them buy a car or rent/buy a house after graduation.
  • Emergencies- bad things happen, so having a credit card provides a safety net just in case of an expensive disaster.
  • Rewards- most student cards come with rewards of some kind. These can be used for purchasing items like textbooks, school supplies or gas to drive home.
Lincoln Savings Bank offers both the College Visa® Card and the Young Adult Visa® Card to help students and young adults make necessary purchases and build credit for a better future. If you have a recently graduated son or daughter and are interested in how we can help them, feel free to contact the Lincoln Savings Bank location nearest you today!
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