Best Student Credit Card - 5 Tips for Smart College Student Money Management

College students face a number of new challenges all at once, including new social situations, the need to perform academically, and living on their own. Somewhere in the mix is also the need to manage their personal finances in a way that allows them to graduate without carrying a whole lot of debt.

Of course, most college students these days graduate with at least some debt in the form of low-interest private or federal student loans. However, many are also finding themselves saddled with high-interest credit card debt that can take years to pay off.

If you are looking for the best student credit card for yourself or your child, here are 5 tips for smart college student money management:

1. Student credit cards are a smart way for a young person to build up a solid credit history:

Having and using a major credit card regularly while in college is a sound idea. If used properly, it serve as a backup for when cash flow is tight. And, it be a great way to build up one's credit score.

2. Most college students lack the discipline to pay the cards off each month:

No matter how much you love and trust the college student in your life, chances are they still have a lot to learn about disciplined money management. Most students lack the discipline required to avoid running up their card's balance without paying it down each month responsibly.

3. Many students max out new cards within a matter of months:

In fact, upon first receiving their first card in the mail, a great number of college students proceed to max out their cards. They then start having to pay the cards' very high interest charges each month while struggling the pay down the balance. This is not an auspicious way to start off life as a young adult.

4. A great way to help them manage their finances is with a prepaid debit card:

A smart way for a college student to manage their finances is through the use of something called a prepaid debit card. These cards carry major credit card symbols like Visa and American Express, so they can be used anywhere a credit card is accepted. You can purchase them in denominations of $25, $250, $1,000 or more - but no application or credit check is required. Using these cards to help a student with their living expenses is a great way to help them keep their expenditures in check.

5. Prepaid debit card usage does not reflect poorly on credit history, and these cards cannot be abused:

Unlike credit cards, a student cannot overspend with a prepaid debit card. When the card's value is used up, it is done - until it is recharged or a new card is bought. And, there is no positive or negative effect on the credit score of the student by using these cards.

If you are looking for the best student credit card, consider getting the student a credit card with a very small limit so that they can start building their credit score. At the same time, help them manage their finances with a prepaid debit card. 

About the Author:
Get a prepaid debit card to help the student in your life manage their personal finances at: Prepaid Debit Card Warehouse.