Whether you're the parent of a freshman or a senior, all students are likely to have questions about credit and credit cards. Many students don't understand that just a few mistakes with a credit card during college can hurt their credit score for years and leave them paying off debt long after they graduate. The biggest piece of advice regarding credit cards that we give to students is to use them like a debit card. We tell students to only buy things that they already have the money to pay for. If students can do this, they will avoid late fees and interest charges that can cause debt to become unmanageable. Students should also know that they need to pay off their credit card in full and on-time every month so that a late payment doesn't ding their credit score.
We encourage you to talk to your student about credit cards before school starts again this fall. Although it has become more difficult for students under age 21 to get a credit card in recent years, over 58% of UNL students report that they have a credit card. A credit card can be a good tool to help build credit during college, but only 61% of students with credit cards told us that they always pay off their credit card each month. Clearly, we have work to do when it comes to educating our students about credit.
To help us with our goal of educating students about credit cards, please share your own knowledge of credit and your experiences with credit cards (struggles included!) with your student. If you'd like some resources to share with your student, checkout the Student Money Management Center resources page. If your student has questions about credit cards or any other money topic, they can always schedule a free and confidential, one-on-one money mentoring session. It takes less than a minute to schedule an appointment online.
More details at: http://go.unl.edu/v0m3