Canadian Secured Credit Cards are Good for Students
Friday, November 30th, 2007
The year was 1982 and the thing that stands out the most was my first credit card. I had just started a new job and was anxious to get my credit started. Getting credit through the bank was what I wanted. I thought that if I could get credit from them, then I was on my way.
At this time I was living on my own and had just started my new job. In order for me to get a credit card, I needed to get someone to co-sign fo rme. I did not think it was coo l to have my mother co-sign for me but what was I suppose to do. At that time, there was no such thing as a secured credit card.
Not knowing who to ask, I decided to ask my employer if he would co-sign. He gladly did it for me and I then received my very first credit card. I would never forget that day.
For a while after I received my first credit card, I would spend about $25.00 a month just to see what my credit card bill would say. After that I would pay it of quickly since I hated owing money. As I grew more confident with my spending habit, I found that this help me in my own business when it came to managing larger sums of money.
1) University / College Students have no credit rating - My story is the same as university students who are just starting off. They don’t have a credit rating with Equifax or TransUnion and thus are required to either get a co-signor for an unsecured card, or put up some security for a secured credit card.
2) They want independence from parents - A sense of well being, an identity of who they are, being able to handle things away from their family. This is what all students want in their life.
3) They need an affordable credit card - Students who have part time jobs are able to scrape some money together to put a deposit on a secured credit card. The good thing, in this case, is that students can get an affordable secured credit card for a deposit as little as a $75.00. This makes it affordable for them get the card and start their credit rating.
4) It helps them learn to manage money and credit - Owning a credit card establishes a good habit when it comes to paying your bills regularly. It teaches students, who are just starting out in their new life, the responsibility of money, the pros and cons of overspending, etc.
A secured credit card allows the student to get a reasonable priced credit card, start a credit rating and then “practice” to make payments and keep his/her credit in good standing.