There is grand debate going on now in American homes, Legislatures and college dorms about the idea of giving a credit card to a college student. There are pros and cons to this argument and in the end you will be the only one that can make the decision of whether or not you need a credit card. Almost everyone wants a credit card it does help in many instances where cash isn’t accepted. You may think that a strange statement however; did you know that when you rent a car you must present a valid credit or debit card. Cash is not accepted until the vehicle is returned and why that is because no one can leave large enough cash deposit to cover the cost of a car. Hotels are instituting the same policies and requiring a credit card to be held until check out. Granted the typical college student doesn’t use these two examples all that much, but what if an emergency arise. You must have a credit card in the person’s name to rent a car no exceptions your college student could be stranded.

It is a personal evaluation that is needed between the college students and their parents. No one wants to see an irresponsible person with a huge credit card debt right out of college. It is something that must be discussed thoroughly so that the college student truly understands the kind of trouble they can get into if they aren’t diligent with their credit. Most cards have an age limit of eighteen years of age before they can get a card without a co signor. This can be a good thing as the parent still sees the bill and can keep an eye on expenditures. If you know your college student hasn’t enough maturity for a credit card then you should sit down and explain the situation in great detail to them. You don’t have to co sign for them and you should make it clear they aren’t ready. If that fails to make an impression the get a prepaid card for your college student, this may be an acceptable compromise for you both. They will get a peek at what is expected of them without letting them get in to debt over the lesson to be learned.

We certainly need to establish credit histories and college student credit cards can help with this. If it can be done successfully with a credit card than this is a good thing, there are many choices out there for the college student to choose from. They have the same offers of introductory interest than a seasoned credit card holder has. The interest rates that come after that introductory rate are usually higher than some one with established good credit. There can be annual fees attached to these cards, but some have no annual fees. They can get reward points and get extra points for spending on restaurants, gasoline and movies. Whichever side of the debate you are on, you need to make an informed choice.