What’s New with Student Credit Cards?
Student Credit Cards on College Campuses
The aggressive marketing of student credit cards on college campuses across has long been a problem. Unfortunately, it doesn't seem to be getting any better. As more and more people take advantage of student credit card offers, more and more cards come to the market. This means more predatory lenders want in on the action too. What's a parent to do?
Help is on the Way
The bottom line is that teaching your children about money and credit cards begins long before they’re even aware of what credit cards are, but once your child is on campus, they're on their own. Before your child leaves for school, make them aware of the offers they're going to run into and discuss the pros and cons of student credit cards and what responsible use entails.
Be Aware of Current Marketing Strategies
The current marketing practices lure students with free promotions and attractive merchandise. It’s also relatively easy for students to sign up for student credit cards, and the credit card representatives actually recommend students just cancel the cards if they don’t want them.
The problem is that canceling student credit cards can have a negative impact on your child's credit score, and college students typically have a lower credit score to begin with because of their age.
Another problem with the current marketing strategies is that credit card companies make it very difficult for college students to get to the dining hall or enter the school store without having to navigate through the tables they set up. Their aggressive marketing tactics can create an unpleasant campus atmosphere.
Helping Your College Student Avoid Applying for Credit Cards
Your best bet is to get your college student a credit card in his or her own name but put it on your credit card account. Just make sure to establish from ground rules about when and why they should use the credit card. This allows them to build a credit history but takes away the temptation to apply for their own student credit cards.