The Pitfalls Of Having A Credit Card In College

Happy Monday Beautiful Women Supporting Women,

I hope everyone is well and that you all had an amazing week.

First, I must offer my sincerest apologies for not posting last week.  I had the extreme pleasure of being in the top 10 percent of agents across the country that was invited to a five day trip to Seattle, WA.  The 3 hour time difference has thrown off my daily routine. I’m happy to share that during this event, I heard about various topics,  but focused my attention to what qualities women are looking for in a Financial Advisor and building generational wealth.  These are some of the conversations I will discuss over the next 3 months.

Last week, we had the opportunity to discuss The Power of Having a Credit Card in College (I recommend the Discover Student cards because of its cash back feature and the rewards given for everyday living purchases, not to mention, good grades pay off with this card.  The student can earn up to $100 total in a statement credit through this program by earning a $20 statement credit every school year their GPA is a 3.0 or higher, up to 5 years total).  This week we will look at the Pitfalls of Having a Credit Card in College.

Common Pitfalls of Having a Credit Card in College

They Can’t Control Their Spending

Having a credit card is dangerous because it’s like having access to cash you don’t have. Some college students don’t understand this concept and max out credit cards within minutes.  They don’t realize that their purchases must be paid for within a month. Remember I shared with you last week that I was extremely excited about pulling out my credit card for purchases?  Here is part 2 of the story: When I received my first credit card, I still was in awe that someone gave me a line of credit with NO JOB!  Charging up a storm, I knew the bill had to be paid so I did what any responsible college student would do. I called my parents to let them know when the bill was due so THEY could pay it!!!!  I had nerve!!!  My parents clearly told me they would pay one time and not to charge another dime until I had a job to pay my own bills!  Well, in 1990, I started this journey in the financial industry to pay for my credit card and never looked back. It was  then realized, if I wanted to use a credit card, I had to pay the bill myself!!! If spending is not controlled, credit cards can be problematic.

It Can Mess Up Their Credit

This can work both ways.  If a student is responsible, their credit score will rise with each timely payment.  On the contrary, if the student is irresponsible, their credit score will decrease within a matter of months.  We are well aware of the negative impact a low credit score can have in everything a person does (e.g. apply for a job, purchase a car, purchase a house, apply for loans, etc…)

While there might not be many pitfalls, the ones that are listed can have a long lasting effect on the student’s credit before they even graduate.  The only way to try and combat the cons is to have serious discussions with your college bound or college student(s).  Hopefully they will understand the importance of good credit and be responsible.

If you have additional questions or comments, please feel free to post here or email me at:

Next Up: What Causes Anxieties In College Students (Note:  I’m choosing this topic because health is a part of building wealth. A mentally healthy person is more likely to be approved for life insurance.  As parents, it is important that we stay connected to our children as much as we can to recognize signs that are inconsistent with their normal patterns.  Remember: Health=Wealth)

As always, thank you for reading.

Have a beautiful and blessed week!


Changing the lives in our community….one family at a time

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