All new students attending a College should get a credit card. There are many benefits to applying for and being granted a student credit card. The two most important reasons are to build a strong credit history and learn responsible life management skills.
A strong credit history will allow students to build credibility with banks, which in turn will improve their chances to be approved for larger purchases that must be funded in the future, with the goal of eventually having an easy retirement (check out this retirement planning calculator for an idea of how much you’ll need).
The easiest examples are when you go to buy a car or a House. Banks rely on your historic record of paying on time to take a decision on what you are likely to do so in the future. The simple fact is that if you show more than a year of being on a college program and that you have always paid your card at the time will have a strong influence on how ready they will be to lend to you.
By the simple fact that you are responsible enough to pay your bill each month on time and not spending more that you can afford will hold you in good stead. Students who do not receive a credit up to the graduation can potentially run into larger problems at some point in their life and can do serious damage to their personal finances and their credit solvency. If you find yourself in this boat, please read more on how to consolidate credit card debt here. It is important to understand what is involved before you get into hot water. Better to be prepared than sorry. Do yourself a favour, and learn the life skills of money management and get a student credit card the first day of the college.
