Personal Loan Resources

Provides advice and reviews regarding personal finance, auto loan rates, mortgage refinance, debt consolidation and credit cards with special focus on student loan consolidation. Nowadays it has become quite easy for college going and even high school students to get credit cards. But the question remains that whether you should allow your teenager to get a credit card while he’s still quite young and thus irresponsible. Many college students are already

The limits are low.
Student credit cards offer low limits mostly ranging from 0 to 00. No bank will offer college student many thousands of dollars in credit, especially if they don’t have a steady source of income. Thus such a small amount is not sufficient enough to do any harm to the kid.

It’s never too early to start building a credit history.
College years may be the best time to build some credit score for the future. The length of credit history is an important part of the credit score. If your child gets a credit card in college, they’ll already have an established history by the time they graduate and this will benefit him when he starts to look into purchasing a car or home.

Help is available.
Many campuses have started financial management courses for college students. This is long overdue, and there are high hopes that such classes will enable the students to use their credit cards responsibly. Parents can also play a vital role to help their kids understand that a bad credit can affect their whole future.

It is better to have a frank discussion with your college going child and tell them about debt. Try to explain the difference between good debt i.e. debt that brings a return on investment, and bad debt i.e. going into debt that you can’t pay for. Above all, you should teach them the importance of living within their means and not viewing credit cards as ‘free money’ .