How to make smart credit decisions in college

John Valerio, a sophomore at the University of Missouri, has learned the importance of responsibly using a credit card while working on campus at the Office for Financial Success.
“There are a lot of benefits that can come from using credit,” he said.
shows more than 85% of college students have a credit card.
Alex Embree, a financial counselor at the University of Missouri, believes college can be the perfect time for young adults to start building their credit.
“We always tell students credit cards are a method of payment, not a source of funds. It’s a tool to help you build your credit history so that you can access more affordable options in the future — if you need to take on debt for things like education, a car, or perhaps a mortgage down the line,” Embree said.
Embree adds there are ways for young people to build credit without opening their cards.
For example, parents can allow a child to be an authorized user on one of their cards. This allows the parent’s credit score to transfer to the student.
Another option is secured credit cards. They require a deposit into a bank account for collateral.
No matter which route someone chooses, experts say parents should have a conversation with their children about needs versus wants.
“There is kind of a keeping up with the Joneses in college, especially on large campuses where there are such different income levels all in one place,” Embree said
Ultimately, the credit card a person chooses should work for them instead of causing trouble. For students like Valerio, he says he is banking on the rewards while building a better credit score.
“I always think, like, I could use my debit card, but my credit card gives me rewards back and it builds my credit and I’m like, I’m going to pay for it anyways. So, I might as well just use it for the benefits,” Valerio said.