Do you have a college kid in your family? If so, it’s a good idea to sit them down and have The Talk. No, not THAT talk; I mean the talk about credit cards and why a free iPod shouldn’t entice them into signing up for one.
Credit cards are great for building up credit scores, but an unprepared student card holder can tear down their score just as easily. After student loans, credit cards are the leading cause of student debt after graduation. Credit cards can be useful for college students in case of emergencies, or for those informed students who want to get a jump on building up their credit and buying power. But a student shouldn’t be pressured into applying for a card they can’t really afford - no matter how many pizzas or t-shirts come with the deal.
Before your kid packs up and moves off to college, talk to them about credit card offers. They need to be prepared for the sheer number of offers they’ll receive, and they need to be able to differentiate between a good offer (low interest, reasonable credit limits, etc.) and a flashy one designed to distract their attention from sub-par terms and conditions.
Original source: http://feeds.feedburner.com/~r/allprocard/mHpb/~3/382138308/
