Credit card providers can be predatory, targeting young college students with promises of easy money whenever they need it. We do not allow any credit card solicitors on our campus, but students may still receive solicitations in the mail.
Credit cards can be dangerous; if a student racks up debt, it can take years to recover. On the other hand, credit cards are useful for emergency situations, such as car breakdowns or renting a hotel room if a snowstorm comes up while driving home. They’re also beneficial for establishing a good credit history, which is easier before graduation than after.
So, what do you do? If you decide in favor of a credit card for your student, encourage him to . . .
- limit himself to one credit card,
- pay the bills on time, and
- pay off the balance every month.
And if your student gets into some trouble and can’t make the payment, again it’s up to you to decide whether to bail him out, preventing any black marks on his credit rating, or let him fail and learn his lesson the hard way. Either way, an open line of communication will enable your student to come to you with any problem he may have in this regard.
If you’re not sure your student is ready for their own credit card, consider a pre-paid credit card. You can deposit as much money as you wish in the account, and they can charge only up to that amount. Also, you can monitor how they are spending money through monthly statements and Internet accounts that show daily transactions. Other types of cards are not pre-paid, but they have very low credit limits and parental monitoring capabilities. Check with different providers to find the right card for your situation.
A final note: MLC accepts credit cards for bookstore purchases, for tuition payments, and for gifts to the college.
