Credit Cards Weblog

It is a very good idea for students to acquire and maintain credit cards. Not only can the card help them in case of urgent requirements, but will also enable them to establish a credit history. However, students will need to exercise due care so as not to lead to defaults. An established credit history will help students tremendously in getting other loans at lower rates.

While shopping for a credit card, students should find cards with interest rates lower than 20%, with no annual fees. Students should also evaluate the add on features of the cards in accordance with their requirements. These features could vary from gasoline points to airline miles or cash back. Finally, students must plan out their expenditures on credit cards so that they do not land themselves in trouble.

To get more tips on what students should do for obtaining credit cards, click here.

The dependence of the young generation on plastic money has led to the coining of the term “Generation Plastic or Gen P”.

Although the younger generation depends more on debit cards, credit cards still are the number one choice of the consumers. Consumers spend more using credit cards as is evident from the fact that about two trillion dollars was spent using credit cards. In an attempt to appeal to the youth, payment of credit card balance using cell phone is on the cards.

A recent poll of Junior Achievement program attending teenagers found that 1 in 9 have credit cards. Some of them got their first card as young as 13 or 14. Having credit at a young age in and of itself is not necessarily a good or a bad thing. How it is used is far more important. The study found that 82% pay off their full balance each month while 18% carry over a monthly balance. Teaching a child appropriate use of credit can help them improve their credit scores while they are young, and make them more responsible consumers when they grow older. The Sun Sentinel reports:

The key, Levine said, is the involvement of parents in teaching children how to use both credit and debit cards -- and in monitoring their children's use of plastic. "You don't give a child a musical instrument and say, `Plunk around on this for a while and see if you can learn to play,'" she said. " The act of giving kids a credit card or a debit card isn't going to give them good money management habits. There has to be teaching and practicing." Levine suggests parents who do get cards for their children sit down and go over their monthly statements, talking about things like interest rates, the importance of paying on time and spending habits.