Carrying a credit card means your son won't have to carry large sums of cash. A credit card allows for a way to cover expenses during an emergency. Making hotel and car rental reservations by phone often requires a credit card to guarantee the reservation, and credit cards also offer benefits such as frequent flyer miles, and discounts on rented automobiles, hotel rooms and other perks. Credit is not an advantage, however, when individuals use credit to stretch their income and add credit charges to their bill every month. The Federal Reserve reports that 47.7 percent of households using credit cards pay interest charges each month.
Some credit cards have annual fees and high interest rates.
You also may pay fees for late payments. It's up to you to be aware of how much credit you have left if you want to avoid the fee. More next week. For more information, contact your local Colorado State University Cooperative Extension office . Go to top of this page.