In today’s digital era where people are greatly adapting to digital payments, who would want to carry extra cash? Among the cashless options, debit and credit cards are the most preferred options by everyone.
You’ll also notice the college students having their own credit cards.
There’s a segment in our society that believes that giving credit cards to college students is a wrong practice and might spoil them. This might be true but cannot be generalized.
Credit cards have their own benefits and when used in the right manner, they can only be advantageous to you. After all, there’s a reason why 3 billion credit card purchases were recorded in Australia alone (2019)!
To give reasoning to this debate, I have enlisted the top 6 reasons why credit cards should be provided to all college students.
1. Helps the Credit History
Whenever you use a credit card, you establish a relationship with the bank to which the credit card belongs. If you use this card responsibly and pay your bills on time, it helps you to build a good credit history.
Every customer’s record is tracked by the credit bureaus. This way when you want a credit card with a higher limit or more advantages, you can easily get one because of your credit history.
If you start using your credit card in your college times, then it will be beneficial for you whenever you need to rent a flat or buy a car.
You’ll already have enough credit history from your college years to prove that you’re responsible for paying out the entire amount.
If you start using a credit card in your college years, it teaches you the important lesson of working on a budget. This way you can keep a track of your expenses and income.
You’ll also become responsible enough to pay your bills on time. Further, you’ll also start managing your money so that you have enough finances available to pay your credit card bills before due dates.
3. Enjoy Additional Advantages
Credit cards don’t only lend you money on credit but also provide you other benefits like cashback, rewards, vouchers, credit points, etc. Don’t avoid these benefits. They’re very useful and help you save a lot of money.
The vouchers are from trustworthy brands which if used well, can help you save significantly well. Thus, with a credit card, college students can also save some extra bucks for their weekend parties.
4. Helps in Emergencies
A crisis doesn’t come knocking at your door. So, you must always keep your rescue plan ready. Unexpected medical expenses, renting a car, computer repairs, dental costs, or any situation can also be sorted with these credit cards.
This will also make your parents feel a little relieved as their child wouldn’t get stuck anywhere and wouldn’t have to compromise their desires.
Yes, you still have to pay the credit card bill that has been caused by these expenses but for once, you will be able to find your way out of this difficult situation.
5. Renting or Buying House
When you want to buy or rent a house, many sellers or landlords make a check of your credit history to know if you’re genuinely capable of paying the amount.
At this time, this credit history will save you from any hassle and increase your chances of getting the house. This strong credit history also serves as a huge help to get a mortgage.
Carrying a lot of cash everywhere invites theft. And I don’t think any of us would risk that. If you use debit cards and your card gets stolen, you’re still at the risk of losing all your money. But this is not the case with credit cards.
If a credit card is stolen, you are not held responsible for the purchases done by the thief. So, whenever you find out that your credit card is no more with you, inform the credit card company immediately to block your card.
These companies also monitor irregular transactions and send you the message to prevent fraudulent activities.
Over to you…
So, these were some of the advantages of having credit cards in college. Apart from a sense of security, your child also learns budgeting and spending habits. The credit history and points also help them in future transactions.
The Daily Buzz combines the pursuit of interesting and intriguing facts with the innate human desire to rank and list things. From stereotypical cat pictures to crazy facts about the universe, every thing is designed to help you kill time in the most efficient manner, all while giving you something to either laugh at or think about!