Gas Credit Cards Help Students Save Cash
Students, especially younger college students, have the unique ability to get a higher approval rate for a credit card than the average working class adult, largely because of the fact that they haven’t had the chance to build up a negative credit history. Now, before we get ahead of ourselves, it should be stated that it’s generally not a good idea to hand off a general, high limit credit card to a student. This could prove disastrous for either the student, the parents, or both.
The truth of the matter is that most young students get to the point in their collegiate life where their cash seems to be stretched a little bit too thin. It’s a common occurrence where they might be weighing the consequences of spending their last three dollars on some hot Beaners java or putting a gallon of gas in their car to get them through the week. Maybe it’s a beer, but the end result is the same; gas or instant gratification with some friends? It’s not a hard decision for the typical college student. Use the cash now, pay for the consequences due to lack of fuel later.
A viable solution for the typical college student is a low limit gas credit card. Particularly beneficial in this situation would be a company specific card, where the student was limited to purchases at a specific store. There are a multitude of benefits for using a gas credit card as a student, whether you are the student or the parent.
Your parents know this, however, and they likely know how difficult it can be just starting out on your own, facing real world expenses and juggling multiple activities on a daily basis outside of work and school.
Parents can control the gas credit card limit and the location where the gas credit card is used if they help the student obtain the card. This is an obvious benefit over giving a general credit card to a student and saying “have fun!”… Because you as the parent, in a small way, control the purchases made with the card.
Students can build up their credit rating. While working within a small gas credit card limit, a student with zero credit history can quickly build up a good credit portfolio and receive better loan rates/credit card rates later on in life.
Parents and/or students can get paid back from purchases. Most gas credit cards have built in rebates or other incentives when using their companies credit card. Every time the student fills up, they receive a rebate, cash back or some other in store incentive – this really can add up over time.
College is meant to be a good mixture of fun, personal growth and development of responsibility so that they can function in the “real world”. A gas credit card might just be a solution that can help both the parents and the student conquer some of the challenges that go along with being a college student.