On a fundamental level there is nothing “wrong” with student credit cards. They can be used to purchase educational essentials like textbooks or just for added convenience while students are living away from home. They also help students start building their own credit histories. But there are risks too. Credit cards also give students the opportunity to get into debt at a young age — something that will likely stay with them for years.

Here are five examples of things students might do with their first credit cards (like the ANZ First Visa) to get themselves into trouble. While many will be responsible with those student credit cards, these examples are simply about highlighting risks and letting students know what kind of behaviour they should look out for. Using a credit card to finance any of the following things while in school, without the ability to pay them off completely every month, can lead to unnecessary credit card debt. read more..

Student credit cards have obvious benefits for those in school. They offer convenience for purchases and allow students to finance expenses like textbooks over time for example. But student credit cards also benefit the credit card companies. It might sound counterintuitive for credit card companies to offer new cards to students, who in many cases aren’t earning a significant full-time income while in school. Yet it happens, and students can actually be an attractive customer base for these credit card companies to target.

Today let’s look at what the appeal of student cardholders is for credit card companies. read more..

When students use credit cards, there is always a risk that they’ll get themselves into financial trouble that will take them years to dig themselves back out of. While it won’t happen to all students, the temptation of additional spending power can prove to be irresistible to others, and it can lead to credit card debt early in their lives. read more..

Student credit cards — we’ve talked about whether or not they’re a good idea and even how to get one. Today let’s focus on what happens after you get your first student credit card. It’s time to talk about how a student credit card might actually be used. What we’re going to look at is a series of educational expenses that might commonly be charged by students.

Note: We aren’t necessarily advocating using credit cards to finance these educational expenses. Instead they’re illustrating examples of how student credit cards might be used, and we’ll explore some of the upsides and downsides in each case. read more..

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? read more..