Prepare College Student for Credit Card Offers
Complete Credit Card Application Together Before School Starts
Jun 3, 2009 Sallie Schaaf Borrink
If there is anything worse than graduating with a pile of student loans, it is graduating with a pile of student loans and a maxed out credit card (or two... or three...). Rather than leaving it to chance when the student arrives on the crazy college campus, parents can proactively work with their college-aged son or daughter to make wise choices about acquiring and using a credit card.
Research Together for Best Credit Card Offers
Take the time to look online together and visit banks to determine what kind of credit card offers are available. Explore credit limits, rewards programs, and cash back options that come with each card. Once you have determined the best potential credit card for your child, get the application.
Read the Credit Card Application Fine Print
Help your student read the fine print and understand all of the technical jargon. Make sure he understands the consequences of going over the credit limit, what will happen if a payment is late, and how much it will cost in interest each month if he fails to pay the balance in full. Talk about building a credit score and how that will impact his choices for years to come.
Fill Out the Credit Card Application Together
Go over the application and make sure everything is filled out correctly. Discuss what a reasonable credit limit would be. Submit the completed application with plenty of time for the student to receive the credit card and begin using it before leaving for college.
Discuss Credit Card Caution and Fraud
Spend some time going over the potential pitfalls of using a credit card, whether it is online or in person. Make sure your student knows how to determine safe places to use a credit card number online. Teach him how to protect his credit card number when using it in public. Emphasize the importance of not allowing anyone else to use his number or have access to it.
Organize the Paperwork
Once your student has received the actual credit card, help him set up an effective way of keeping track of the paperwork. Determine the best way to store receipts and keep a running tally of what has been charged that month. When the first statement arrives, go over it together and check for accuracy. Determine how long to keep the receipts and how to safely dispose of them once they are no longer needed.
Set Up a System of Accountability for Credit Card Payment and Balance
Depending on the student, it can be wise to set up a system of accountability regarding the credit card balance. The primary purpose is to make sure your child pays off the credit card every month and is only using it for reasonable expenses that can be paid in full when they come due. While some students may be naturally strong in this area, some are not and need to develop good habits from the start to make sure they make a full credit card payment each month. Although he may be somewhat resistant to "checking in " with their balance each month, he will thank you when he doesn't have the added burden of credit card debt.
College students are bombarded with credit card offers and credit card applications. Rather than leaving it to chance, parents can proactively work with the son or daughter to secure a good credit card and get started in an educated manner. By working together, parents can greatly increase the chances of their child being a responsible credit card user and keeping the credit card balance at zero each month.
Credit Cards for College Students
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