If there is anything worse than graduating with a pile of student loans, it is graduating with a pile of student loans and a maxed out credit card (or two... or three...). Rather than leaving it to chance when the student arrives on the crazy college campus, parents can proactively work with their college-aged son or daughter to make wise choices about acquiring and using a credit card.
Research Together for Best Credit Card Offers
Take the time to look online together and visit banks to determine what kind of credit card offers are available. Explore credit limits, rewards programs, and cash back options that come with each card. Once you have determined the best potential credit card for your child, get the application.
Read the Credit Card Application Fine Print
Help your student read the fine print and understand all of the technical jargon. Make sure he understands the consequences of going over the credit limit, what will happen if a payment is late, and how much it will cost in interest each month if he fails to pay the balance in full. Talk about building a credit score and how that will impact his choices for years to come.
