Students are sometimes in an interesting position compared to other consumers. They may have high costs (such as their school tuition), only a part-time job, and still be eligible for credit cards. Because of the common lower income levels, some students turn to those student credit cards as a means of primary financing — to pay for course credits, regular food expenses, or even nights out with friends.

Using student credit cards to cover or finance these everyday expenses (which would normally be covered by cash available or other financial options) is a bad idea, especially for students.

The Temptation of Student Credit Cards

It isn’t difficult to understand the temptation to use student credit cards as a primary financing tool while in school. School costs, like textbooks, can get expensive. Courses themselves cost money and some students might fall short from time to time on other financing options. Then there is the need to provide for basic expenses while potentially earning a low income. That can make day-to-day life more of a struggle. And of course there’s the issue of peer pressure — when your friends all want to go out on the weekends and you can’t afford to, credit cards seem to give you a reprieve.

3 Reasons Not to Use Student Credit Cards as Primary Financing

As appealing as it might sound to use student credit cards as a primary financial tool, there are some serious potential problems.

1. Student credit cards are generally low credit limit cards. If you “waste” the available funding on day-to day expenses, you could quickly reach your credit limit or even exceed it. Not only would that potentially lead to over-the-limit fees, but you wouldn’t have financing for more important things if you needed it (like emergency car repairs so you could still get to school and your job).
2. There is often an assumption that student credit card debt isn’t a big deal because, once the student graduates, he or she will get a decent job and earn enough to pay off that debt. The problem is that there is no guarantee of that. You may be fortunate enough for that to happen. You also might struggle to find a job for a while. It isn’t worth setting yourself up for the risk of long-term debt and continually accruing interest on what may or may not happen down the road. For primary financing, work your budget around your actual income.
3. It’s too easy for students to get in over their heads. Think about the low credit limit issue again. Let’s say you get into the habit of charging for regular food and outings with friends. If you aren’t earning enough to cover those expenses outright, that debt will continue to grow month over month. You’ll reach that credit limit before you know it. Not only will you face over-the-limit fees (which could result from interest — not just more purchases), but you could find yourself with no way to cover the basics. Once the limit is used up, it’s used up. You’re out of luck. You’ll end up having to work harder to use real cash to not only pay for new regular expenses but to pay for the backlog of old ones.

Having a student credit card is a great responsibility. But it’s also a great opportunity. You have the opportunity to get off on the right foot when it comes to building a strong credit history. Don’t pass up that chance by thinking of your student credit card as primary financing or a replacement for earning money to cover the basics.