Discussing the Student Credit Card with your Parents

As you start to enter adulthood, you are going to find yourself wanting a credit card. If you are under the age of eighteen, you will not be able to qualify for your own credit card but may be allowed to use the credit card of a parent by having them get an additional card in your name on an existing credit card account. Once you are eighteen, you can get a credit card fairly easily, especially if you are a college student who is being offered student credit cards. However, you should still discuss the student credit card with your parents.

Here are some reasons to discuss student credit cards with your parents:

• You can get a better interest rate with their help. Basically, there are good terms and bad terms on credit cards. Parents with good credit can co-sign on a credit card in order to help you get better terms. This saves you money and gets you rewards from your student credit card.

• They can help you with the application. Even if your parents don’t co-sign on the credit card for you, their experience with credit cards gives them knowledge that can really help you in choosing the right credit card.

• It is best to be honest with your parents about money. The thing is, there’s an unfortunately high chance that you’re going to make mistakes with your first student credit card and that you could get into financial trouble because of it. This is a lot easier to go to your parents for help with if they played a role in helping you choose the card to begin with.

Now that you know why it’s a good idea to talk about student credit cards with your parents, here are some tips for discussing the issue of student credit cards with your parents:

• Know what it is that you want from them. Do you want to be allowed to use one of their cards? Do you want them to co-sign on a card for you? Do you just want advice from them about choosing a good student credit card? Know what you want before you start the conversation.

• Demonstrate your responsibility. Do some research into your credit card options. Write out a plan of how you would use the credit card including a budget for paying back big expenses. Hold down a part-time job for awhile before asking about credit cards. These things show your parents that you can be responsible with your finances and that you’re ready to start talking seriously about getting a credit card.

• Stay calm. Parents and kids talking about money together is a volatile thing sometimes. Stay calm during the conversation.

Parents can be a great resource when it comes to getting that first credit card. They may even be helpful in giving you tips about using and paying back the card. Try to think of them as this type of resource and not as the enemy when going to them to discuss student credit cards!