College Students Are Responsible Enough to Have Credit Cards - Essay Example

31 March College Are Responsible Enough To Have Credit Cards Introduction Credit cards are a means of payment applicable in the absence of ready cash. In the business world, no one can buy any commodity with an empty hand. Credit cards therefore make it easy for their holders to buy commodities even without having cash at hand. This only happens with the client giving assurance for a later payment. It is an efficient way which if properly used, can lead to great financial benefits. This is because good use of credit cards creates a good credit history hence guaranteeing the owner a better financial living standard (Gardner, Jewler and ‎ Barefoot 37). However, care must be taken to avoid landing into debts. This is because credit cards create the tendency of impulse buying which may later become difficult to pay. For quite some time, credit cards have mainly been embraced by business organizations. This is because they already have established credit histories. But this norm is changing with time and credit cards are gaining access into colleges. This is because the card companies argue that college students are young and independent, hence they have the ability to make purchases at their convenience without the support of parents. For this reason, the card companies believe credit cards are essential components of college life (Thompson 47). Before obtaining a credit card, there are eligible requirements that a person should meet. The age bracket and other characteristics of most college students meet the basic requirements for obtaining credit cards therefore college students are responsible enough to have credit cards. College Life and Use of Credit Cards College life presents students with a new way of living which is associated with limited restrictions and marks the beginning of most individuals financial lives. This carefree lifestyle leads most of them to have high spending tendencies. However, this does not apply to all because some students come from financially disadvantaged families. Such students have to look for every possible means to meet their education costs. These may include going for loans or working part time to supplement their monetary needs. However, students from stable backgrounds tend to lead lavish lifestyles since they are able to meet the costs (Thompson 47). College life also comes with heavy economic budgets arising from the massive workload of studies. As a result, students may experience financial struggles in the course of their learning. This is especially if they do not practice good planning and understanding on how to manage their personal finances. Managing personal finance is a vital component of life that should be well undertaken. Unfortunately, some students lack financial management skills hence suffer from monetary problems. Financial management will make it easier for them to meet their goals and even avoid unnecessary wastage of money. Therefore, due to the prevailing circumstances of the college life, credit cards are of great importance to the students. But they should fully understand the responsibility it presents. This is to avoid negative financial implications that may follow them at the end of their studies. Walden and Thoms say most college students are just using the credit cards for the first time in their lives (78). This shows they have limited knowledge about the cards. The colleges should therefore set policies and guidelines regarding the use of these cards before the students acquire them. This will aid them in avoiding financial constraints. Unfortunately, because of the love for independence, the students are ready to try the cards even with all the risks involved. Surprisingly, the cards do not shy away from them even though they have limited experience. This is because credit cards do not discriminate anybody whether already a professional or just a student (Pacheco 11). Also the credit card companies knowing well the financial crisis the students face, are ready and willing to advance the cards to them. And owing to the heavy need, they will not reject but even go for more than they can afford. Additionally, the card issuers allow all people from 18 years and above to have the cards. Since the college learners are in this category and form the major targets, they are easily trapped by the marketers. This is because the main aim of the credit issuers is to get them into as many pockets as possible. Hence college students should trade with care when it comes to acquiring credit cards. Eligible Requirements for Obtaining Credit Cards To qualify for credit cards, the following are the conditions which apply: One must attain the minimum required age which is 18 years. There is need to have steady income to enable the holder make prompt payment for the credit card purchases. Need to have a positive credit history for easy approval by the credit card issuers. One should not have high debts while applying for the credit cards. Analyzing these conditions, it is a fact that college students are eligible to be credit card holders. And as Thompson affirms, they are key targets particularly the freshmen (48). Hence he formulates a guideline for the students concerning the use of these cards. He says (Thompson 48): The students should have parental approval first because parents can advise accordingly. This helps in avoiding future regrets arising from mistakes relating to credit card use. They should strictly have two cards only whereby one is for purchases and the other for emergency cases. The cards should also not be at their limits at any given moment. This is to bar the students from going for additional ones. Credit cards must not be used to do purchases for friends to reduce extra costs. To avoid financial struggles, students must not buy more than they can afford. This is because purchasing on credit is very addictive yet they are not for free. Monthly bills must be promptly paid in order to have good credit history and firm monetary base. College students are the main targets for the credit card companies hence must resist the temptation to acquire multiple cards. Credit cards are advantageous to the college students because they get loans free of interest. They can also make the payments later when due and convenient for them. However, if the cards are not responsibly used the disadvantages can be greater than can be imagined. As a result, they may not escape the financial struggles. This is affirmed by Swart who presents a number of advantages of credit cards to students (342). These include: The students are free from the risks of being robbed of cash. They do not suffer any loss in the event the card is stolen. Also, they are not responsible for purchases made from the time the report of theft is received by the card company. The card holder can purchase an expensive item over an extended period of time. Card holders also enjoy interest free loans on credit purchases. The disadvantages college students may experience with the use of credit cards include: The cards encourage impulse buying hence they may incur unnecessary debts. If the monthly bill is not fully settled, the holder is charged interest on the overall balance. Conclusion From this discussion, it is a fact that college students are eligible to obtain credit cards. Their age also dictates that they are responsible enough to obtain them. Because most college students are just commencing their financial lives, they must make careful and responsible decisions about using credit cards. The cards do not offer free money since purchases done on credit must be paid back when the bill comes (Pacheco 11). Therefore, they should learn proper utilization of the credit cards. They should also learn to be responsible with their finances to avoid overspending. This is because colleges are marketable grounds and the cards issuers will not stop coming with new and attractive deals to entice them. Additionally, it is a requirement for credit cards holders to abide by the rules and regulations of the card companies. Therefore, college students must ensure prompt monthly payments to evade late charges. They should also avoid spending beyond their means. This is because credit purchasing is spending money that you do not have. It is the credit card company buying on one’s behalf and that is why the money has to be refunded. College students should be aware of the techniques that card companies use to entice them. Having this knowledge helps to avoid being trapped by their schemes and evading money pitfalls. As a result, the students are sure of being on the right track to financial success. Works Cited Gardner, John N., ‎A. Jerome Jewler and ‎Betsy O. Barefoot. Your College Experience: Strategies For Success. Boston: Wadsworth Cengage Learning, 2009. Print. Pacheco, Barbara. Escape Credit Card Debt Today. Beaverton, OR: Nationwide Home Business Center, n.d. Print. Swart, Nico. Personal Financial Management. 2nd ed. Lansdowne: Juta & Co. Ltd., 2002. Thompson, Joaquin L. My College Finance: A Guide to Understanding Personal Finance for Students and Parents. Georgia: Gorilla Publishing, 2007. Print. Walden, Michael L. and Peg Thoms. Battleground: Business. Westport: Greenwood Press, 2007. Print. Read More