Credit Cards For College Students - Why?

 As the kids get ready to head off to college, there are a lot of things to think about. Decorating the dorm, move in, choosing classes etc. But let's talk about a few other things that will help our students in the future.

Credit Cards For College Students - Why?

1. Open a credit card in their name - This might seem counter-intuitive, why would you want a college student to have their own credit card? But here's the deal. It's easier to get approved as a student for a starter credit card and he/she can start building credit. Plus the cards earn cash back or travel rewards so its FREE money as long as your student is responsible. There are a few credit cards out there that will approve students or if you visit your home banking institution with your student, you may find that he/she will be approved on the spot.

Some credit cards available to students are:

1. Discover Student cards - there are two to pick from Discover Cash Back and Discover Chrome. Both have no annual fee, earn cashback, and include a $20 per year credit for good grades.

2. BofA Student cards - Bank of America also has two cards available for students, a cash back card and a travel card. Right now, you can earn a bonus $200 for $1,000 minimum spend on the cash back card. With all the move in purchases, that could be pretty easy to meet. Both cards have no annual fee.

As with any credit card, you must set it on auto payment immediately and pay it off completely each month to benefit. If not, then you lose all the benefits of cash back and hurt your credit. 

The second thing, your 18-year-old must do before they leave for college and even if they don't leave for college is complete forms. Once our children turn 18, the world now sees them as adults so unless you have the proper forms in place, you will no longer be privy to their information. Imagine if they are hospitalized, you will no longer be entitled to talk to the doctor about your own child. Here are the forms and an article from Forbes.com that breaks it down. 

• Fill out a HIPAA release, 
• Power of Attorney 
• Health Care Directive 

Remember to fill out these forms in both your home state and the state where your student will be going to college.
Now you can buy that cute comforter for your child's dorm room.