Are you taken aback by the concept that the headline screams forth? Do not be! The modern age has indeed paced up lives largely. One angle of this pacing up has been targeted on the fast credit handling potential of college students.

Until a few years back, it was impossible for a person under 18 years to get a credit card and swipe it as per his or her taste. There was a strict norm that does not allow any individual below 18 to acquire an independent line of credit. However, the easy availability of authorized sub-cards has given college students the freedom to have a personal student credit card.

Under this scheme, the parents generally take up a card meant for use by the children. All transactions are recorded on the original credit card but the children or the minors have the right to use their add-on cards for any purpose. The positive side of this is that children are initiated into the habits of credit spending and the like early on. In addition, he or she is enlightened about the concepts of creditworthiness and the like that form an educative part of life.

The Downside

Just like all other aspects, the downside to this remains that in case there is a failure to pay up the credit bills or the interest due by the minor; the original cardholders are liable for penalty. This often takes a negative entry into the credit reports of parents of these minors. Thus, the credit-monitoring agency will not see if the minor has incurred the arrear or the original holder! It remains for you to take the risk of trusting your child with the supplementary credit card. Take a decision only after much thought. A small step can lead to a bad credit mess later on.