Should You Get a Credit Card in College?

By Abby Kutscher on January 27, 2013

Credit card companies love to target college students. Young people who are out on their own for the first time and are probably low on cash… who could make a better demographic? Owning a credit card has a variety of benefits, but it can also have some disadvantages too. If you are considering applying for your first credit card, then read on to find out the pros and cons of this decision.

The immediate pro of a credit card is the spending ability. Charging something means that you don’t have to have the money then and there. People often find the instant gratification of a credit card to be a big appeal. However, big spending can lead to a disadvantage too. Often, credit card owners get caught up in the rush of buying something expensive and forget that they will have to pay for it eventually, and maybe even pay more (with interest or late fees). Another disadvantage of shopping on credit is that shoppers may disregard their credit card limits. Going over these limits will accrue a fee.

Another appeal for college students is that owning a credit card will help to build up credit for after graduation. Having good credit can help to secure a loan for a house or a car. However, the opposite effect can occur and the student could end up with bad credit if he or she does not pay their credit card off and consequently goes into debt.

If you want to get a credit card in order to build your credit for later on down the road, then you need to make certain that you will be able to pay off your credit card in a timely manner. Some advise that you shouldn’t pay it all off at the end of every month but that you leave a little for the next month as well. This looks good on your credit score because it shows that you know how to balance your money. Of course, paying on time always looks good too.

Credit card applications always have fine print. Read it! If you are going to own a credit card, then you need to make sure that you are fully informed and aware of the grace period (the time you have before interest is added), annual fees, interest rates, and penalty fees. And of course, be aware of the pros and cons mentioned here too. It’s your decision; decide wisely.

Follow Uloop

Apply to Write for Uloop News

Join the Uloop News Team

Discuss This Article

Back to Top

Log In

Contact Us

Upload An Image

Please select an image to upload
Note: must be in .png, .gif or .jpg format
OR
Provide URL where image can be downloaded
Note: must be in .png, .gif or .jpg format

By clicking this button,
you agree to the terms of use

By clicking "Create Alert" I agree to the Uloop Terms of Use.

Image not available.

Add a Photo

Please select a photo to upload
Note: must be in .png, .gif or .jpg format