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Top 6 Pros and Cons of junior credit cards

The utilities of the credit cards are immense. Moreover, as the use of online transactions have gained immense popularity in the recent days, it has become extremely important for every individual to have access to plastic money. Even the juniors or the students should be given access to credit cards by the parents as many transactions can be conducted only through plastic money. Though most people will argue that there is no need for young adults to have their own credit card, but here are some arguments in favor of and in opposition to owning a credit card by juniors.

student card

Let’s discuss the Pros first:

• Responsibility: Having a credit card will help the child to become more responsible especially in dealing with financial matters.

• Security: It is much easier to carry plastic money instead of cash. Since the young adults need to travel regularly to different places like schools, library and other places using plastic money is a much safer option in comparison to cash.

• Good credit score: Owning a credit card from the young days and handling it properly i.e. paying off the credit cards bills and other kinds of payments attached with it in time provides them with the opportunity to build a good credit history from a young age which is going to be extremely crucial for their future investments.

• Convenience: For young adults who live away from home credit card is a blessing in disguise. If they have access to credit card, then they need not call back home for some fees every week asking for money.

• Records of all transactions: It is extremely important to keep a close eye on the expenses of the juniors and it can be best done by checking the credit card statements. So you need not spy on his or her spending habits as you have written record of the same.

• Utility in online shopping: Online shopping is a much cheaper shopping option in comparison to real time shopping. The juniors would be able avail these cheaper options if they have access to credit cards for buying books and other things.

student card

Now let us consider the negative effects of giving students access to credit card:

• Debt: If the credit cards are not used responsibly, then the young adult can land up in severe debt.

• Paying off in time: Most often it can be seen that the junior credit card users fail in paying off the credit card bill in time for which they have to pay huge amount of interest that could have been avoided.

• Introductory offers do not last long: Though great benefits like 0% interest are available to the credit card at time of introduction but they are valid only for some months. Therefore, it is important not to fall prey to the attractive offers and read the terms properly before opting for a credit card.

• Propensity to overspend: Having a credit card also gives the student opportunity to overspend which is an extremely bad practice.

• Value for things: Since the juniors are provided with such useful things from the very initiation, it can be seen that they do not understand the value of it and take it for granted.

• Do not get allured: It can be seen that during this tender age the students often get allured by flashy things that they see their friends’ use and end up indulging in them and getting used to such habits. They could do so as they have the credit card at their disposal and do not have to ask for the money from their parents.

These are some of the pros and cons of providing the students with credit cards. One important thing that parents should do is fix the upper limit of the credit card so that its usage is limited. This will help them to keep the spending within limits and at the same provide them with the facility.