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When people here the word "student" they automatically picture some 18 or 19 year old kid with no life experience and no financial education. However, this assumption is not always true. In fact, there are many students who are intelligent, responsible adults that are well versed about financial affairs and many other economic matters. As such, if such a student were to possess a credit card, it probably would not be an issue. However, when that 18 or 19 year old kid gets a credit card, it could be a disastrous situation if such a person is not responsible enough to possess such a powerful financial tool. However, should a young student use their credit card responsibly, they could experience years of financial prosperity and savings. As such, there are pros and cons to the possession of credit cards by young students.

One of the biggest positives of giving a young student a credit card is the potential for a financial education. Credit cards are a very powerful financial tool and as such, if a student can learn how to effectively utilize such a tool, he/she could obtain loans, get better loan terms, and save money due to obtaining lower interest rates on those loans. Additionally, should the student want to buy a house in the future, a good credit score is one very important factor that is considered by the lender. It is important to note that many jobs and professional licensing boards look at credit scores and credit reports in order to determine the applicant's financial competence. As such, having a good credit score can help a student make a good impression at their next job interview.

One of the biggest disadvantages with students having credit cards arises if the student does not have an adequate education as to how to use a credit card. If such a situation arises, a student could quickly find that credit card abuse can lead to heavy financial strain. Additionally, should the student disregard or refrain from paying his/her bills, the student's credit score and credit report will be severely damaged. As such, all of the advantages outlined above will be lost. Additionally, because a credit report can naturally (and by "naturally" I mean on its own and without the help of a credit repair company) take up to ten years to return to normal, the student could be faced with many financial problems for a long time.

The point is, if a student can learn to effectively and responsibly use a credit card, it is in his/her best interest to obtain one. If, however, a lack of financial education will lead the student down the path of credit card misuse, a credit card should not be given.

Learn more about this author, Marco Angioni II.
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