In the past we’ve talked about how people can determine if they’re ready for a student credit card on an individual level, and we’ve even discussed how to get a student credit card. In a more general sense though, should students have credit cards at all? Are teens and young adults really ready for the responsibility of credit cards like the ANZ First Visa when they’re balancing school, their home life, and possibly a job?

We’re not going to try to pass a collective judgment here with a “yes” or “no, students shouldn’t have credit cards.” What we will do is look at some of the pros and cons not of the credit cards themselves (we’ve already done that), but pros and cons of letting students have credit cards in general. Let’s start with some of the reasons maybe students shouldn’t have credit cards.

Why Students Shouldn’t Have Credit Cards

There are several arguments for students not having credit cards. Here are a couple of the big concerns:

1.    Credit cards offer too much temptation. — Students might be tempted to go into credit card debt either because they’re short on cash for necessities and afraid to ask family members for help, or because they can’t resist the spending power when they want the latest fashions or gadgets.

2.    Credit cards add too much stress. — Do students really have the time to thoroughly review statements every month, calculate interest, and other things involved in managing a credit card account carefully? Is that too much of an added burden on top of all of their other responsibilities?

Why Students Should Have Credit Cards

On the other side of the fence, there are also arguments for students having credit cards. For example:

1.    Credit cards prepare students for fully managing their own finances. — When students graduate and are out there on their own, they need to be able to manage their finances. Credit cards might help them form good habits early.

2.    Credit cards are a good emergency funding source. — What happens if a student needs money quickly, such as for text books? Perhaps their parents agreed to pay the cost, but they can’t send them the funds quickly enough. A credit card lets them make the purchase now and pay it off when the money comes. The same is true if they have an emergency expense in between pay cheques.

There are always going to pros and cons to using credit cards, no matter what type they are. Whether or not a credit card is a good or bad decision is a very individual choice. Should students have credit cards? There’s no right or wrong answer when you try to generalise. Instead ask “is a student credit card right for me (or my child)?”