Are Credit Cards are Harmful to College Students?

It is not news that debt is the number one thing that is affecting college students. So many students are struggling with debt during college and after college. That, in turn, affects their ability to save for retirement or buy a home. The goal of education is usually to help you achieve financial freedom after school.

If you have too much debt, that won’t be possible at all. Credit cards are additions to the heavy burden of loans that a student already has.

Why College Students Should Steer Clear of Credit Cards

Read along to understand why students don’t need to have credit cards;

  • No Steady Income

A credit card is handy to someone with a steady income. It helps you build your credit history, therefore making you eligible for life-saving loans like a mortgage. For students, school is more of a priority than a job.

In most cases, even students who work as they study cannot afford to pay their credit balances promptly. That is because they do not have a steady income. Some students do not even have any income at all. In that case, having a credit card is not a wise decision at all. Students should strive to live within their means.

  • Poor Financial Management

When in college, students have little to no knowledge of financial management. They may not be able to plan for the money they have reasonably. Also, students do not have significant expenses. Most of it is the usual and straightforward expenses like food and clothing. That should not require so much money that you need a credit card for it.

Having a credit card will http://www.pitt.edu/~dmberk/writing05.pdf just make it even more complicated. Students should get a credit card much later in life when they are older and wiser. That way, they won’t misuse the credit card and end up paying for things that are not necessary.

  • Increases Debt

Almost all students are already struggling with a student loan to cover their tuition. Adding a credit card to the equation is a way of pushing yourself deeper into debt. When the obligations are overflowing, no amount of salary can get you out in the time you need to start future savings.

One way to get out of debt is to make sure that you keep minimal loans. Take loans that you can comfortably pay. Most students will not think about the future, but the exact moment they feel they need that money. The more debt you have, the less likely to succeed you are.

  • Bad Spending Habits

Students will always spend on things that they do not need. Most of the time, it is out of peer pressure or the need to fit in. Even when they can afford the necessities, they will take loans to fund a lifestyle of leisure and comfort.

A Summary on the Influence of Credit Cards to Students

When such a student has a credit card, they tend to misuse it with unnecessary stuff. Given that they don’t have a stable source of income, they end up being in debt, and they can’t afford to pay the balance.

If you do not need a credit card, don’t get one. A debt-free life is much more enjoyable than one that has too many loans. You can build your credit history after school.