My mother who has not recovered yet from the fact that her youngest, my brother, has gone to university in the other big city is now in the midst of another decision to make. My brother asked if he can now have his own college student credit card. My mom is pretty apprehensive because it is a decision she thinks needs total attention.
To plead his case, my smart brother sent mom a document wherein he enumerated reasons he should be allowed to have his own college student credit card. I guess he went online and found a number of good reasons for our mother to give in.
He said he is going to get one anyway. There is a study that about 92% have at least one credit card by sophomore year in university. In this survey, most are able to have one after taking an offer received in the mail. He said that if mom does not cooperate, he will likely be making the wrong choices – apply for a high interest card. He will probably end up being in so much debt because our mother did not help him become more educated about these things.
Sooner or later, he said, he will also need to build his credit score. Why not start with it early by using a college student credit card when there is no bad record yet, right? In the future, they will need a clean record to apply for a car loan or a mortgage with better rates than others. Best of all, Mom will not have to co-sign any of his loans.
My brother was also wise to pull the heartstrings. He said that he would prefer it more if our parents are the ones who would teach him about credit, budget, and all things financial. See, our parents learned it the hard way when they had to pay off debt brought about by high interest rates.
Most importantly, he said, he will need a college student credit card for online purchases of books, other school stuff, and emergencies (food and gas). If mother wants him home for the holidays, he will need a card to reserve for airline tickets.
I think mother has already agreed especially after that she read an article saying that young adults who are in school are given special qualifications versus otherwise. Banks actually offer this specialized credit card. She caved in on two conditions: that my brother will have to co-sign with our Dad and that they will have to choose the lowest limit possible. My brother happily obliged, as long as he has his own card.