Student Credit Cards Help Kids Build Credit History

Student credit cards can help kids build their credit history. A student credit card is available to kids in college and offers a number of benefits to customers. Kids can build their credit history and improve their credit score with help from a student credit card.

Teach Kids About Responsible Credit Card Use

Parents need to work with kids to teach them how to use credit cards responsibly. Experian and USA TODAY surveyed college students in 2006 and found that more than 25% of college graduates surveyed delayed buying a home, 14% waited to have kids and 11% delayed marriage because of credit card and loan debt. Ordering children’s free credit reports are a great way to get the conversation started. Parents should share their credit histories with their kids and have open discussions about the responsible use of credit cards and debt.

Warn Kids About the Risk of Identity Theft

Kids need to be warned about the risk of identity theft. According to the Federal Trade Commission, people between the ages of 18 and 29 represent the largest group victimized by identity theft. College students can order their free credit report annually and review it for mistakes. Suspicious items found in credit reports should be immediately reported to the credit bureaus. Kids also need to use caution when throwing away mail to avoid the risk of identity theft . And students should keep all personal and financial information hidden when they are in class.

Build Credit History With a Student Credit Card

Kids can start to build a solid credit history with a student credit card. Kids benefit from student credit cards, designed for the unique needs of college students. Student credit cards include rewards cards, low interest cards and balance transfer cards. Student rewards credit cards give customers cash back or rewards points for purchases. Low interest credit cards and balance transfer credit cards can be used to pay off or reduce high interest credit card debt.

Encourage kids to talk about the credit card offers they receive, and take the time to help them review before they apply.