5 Reasons a Student Needs a Charge Card

A student charge card is not just a luxury; in most cases, it is a necessity. Prudent adults would not avoid having a charge card all together. Though it may be hard to think of a student this way, they are adults that have the same financial needs as other adults in the workforce.

#1 Living Expenses

Student loans typically only cover the expense of tuition. In some cases, like with federal student loans, the money goes straight to the university. While these loans are essential, they are not enough to meet the day-to-day demands of living on or off campus. Students need to buy books, food and purchase essentials like clothing.

#2 Building Credit

A student should not wait until after graduation to start building credit because by then, you will be behind the game. Most students need a car loan or an apartment immediately upon leaving college. Without credit, it is impossible to get these items. Student charge cards represent a valuable way to start building credit young so students have a chance at these key items without delaying in the future. The longer a credit history, the better, and charge cards are usually the most accessible form of debt available to young people.

#3 Emergencies

Responsible adults carry credit cards in case of an emergency. There are times when a person just doesn't have enough cash in the bank account to cover an expensive medical bill, getting a car out from the impound or other situation. This is when a credit card becomes essential in getting people over small humps in the road. Without credit, many of us wouldn’t have a way out of bad situations.

#4 Travel

Students travel frequently. Whether the travel is just a simple trip home for the holidays or a week-long spring break in an exotic place, there is a need for a credit card when travelling. Carrying cash is not advisable for these situations because it may be easily stolen or not accepted at various locations. This is particularly true when traveling abroad where currencies are different. Using a credit card when traveling can also help people budget their trips and expenses. A low-limit charge card will cap the amount of money spent on any one trip.

#5 Monitoring Credit

While it is not pleasant to consider, a student may spend cash on any item he or she desires. If a parent is supplying the cash, the parent may be spending money on nights out at bars or trips to the mall. With a credit card, the parent can see all of the charges a student is making. If the card is truly for utility bills, gas or emergencies, then the parent can always monitor to assure this is what the card is being used for. While this provides extra security, it also helps students learn how to truly budget instead of just flushing cash away on various expenses. Reviewing a bill each month is a helpful learning tool.

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