Why Students Should Use Canadian Secured Credit Cards

I remember getting my first credit card back in 1982-ish. I started a new job and was anxious to get my credit started. I wanted the feeling of having a piece of credit with the banks. I knew that if a bank gave me credit, that was a good step.

At that time though, banks did not have secured credit cards. In order to get a credit card, I needed someone to co-sign for me. I especially did not want my mother to have to co-sign since I did not think that was cool.

I remember asking my employer if he would co-sign for me. He was kind enough to help and I got my credit card. I've never looked back.

For a while there, I would spend about $20 - $30 a month, just so I could see what would happen on my credit card statement. Mind you, I would then immediately pay it off since I can't stand owing money and I didn't want to rack up a large amount on my credit card. As this went on for a few months, I noticed that I became more confident in managing my money and my credit. This later helped me in my own business when it came to managing large amounts of money.

1) University / College Students have no credit rating - I started out just like any other student starting off. We do not have any credit rating with either TransUnion or Equifax. Therefore, we need to get a co-signer for an unsecured credit card or put up some money for an 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 - A secured credit card allows a student (who has a part time job) a chance to start their credit history. They are able to put down a small deposit which makes it affordable for them.

4) It helps them learn to manage money and credit - How to manage money is something that each student needs to learn, especially when they just starting out in life. Having a credit card and being reponsible for making payments on time is one way. This establishes a habit for others bills, such as, gas bill, phone bill, mortgage bill, etc.

A reasonably priced credit card, starting a credit rating, and the responsibility of making payments to keep their credit in good standing is what a secured credit card allows the student.

About the Author:
University Students often have a difficult time obtaining credit as their credit rating is not yet developed. One of the best ways to start a credit rating is to get a Canadian Secured Credit Card. Visit Canadian Money Advisor for more info.

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