Some financial wizards advise against the use of credit cards and they might not agree that a young and impressionable college student should have one. However, a credit card can be a valuable tool when used correctly. As long as you don't use it to spend more money than you have and you budget your spending wisely, a credit card can build good credit and add some convenience to your day to day activities. College students could benefit from some of the features one a good card and here are some reasons why.
Credit Cards are Secure
If you are monitoring your spending and keeping track of your payments like you should, you would notice any strange activity on your card. If your card is stolen or fraudulent charges appear, it is fairly easy to report and fix the issue. Most card companies are very serious about security and will quickly respond to stolen cards. If cash is stolen it is gone for good and if a debit card is stolen your account can be tied up for days while the bank corrects the issue. For students who are new to independence the security of a credit card is ideal.
Build a Credit History
The fact is, you can't have a good credit score if you don't use credit. College is a great time to start learning about how to spend wisely and build good credit. The earlier a person is when they begin pumping up their credit rating, the better it will be by the time they are ready to put it to the test with a loan or a home purchase. Of course, credit card abuse can destroy your credit but if you misuse a credit card, your credit score will be the least of your financial worries. Again, a credit card is a tool and if it is used incorrectly it can be dangerous. If it is used well it is of great value.
Credit Card Rewards
A good credit card comes with limited fees and helpful benefits like cash back or airline miles. For a college student, airline miles are great if they are attending school very far from home and cash back is great for anyone. In fact, there are even cards that are specifically designed with college students in mind. A college credit card can give you cash back on things education related purchase and even gas.
Sometimes the best deals can only be found online, especial when it comes to expensive items like textbooks. One of the most convenient ways to buy things online is with a credit card. You can use online pay accounts like PayPal but again if something criminal happens to your payment information, credit cards are the most secure method.
Like with any payment method, frivolity with a credit card can cause major problems. Use them wisely and take advantage of all the elements.