The obvious reason first, having at least one Credit Card is essential to maximize Your Credit Score. You are missing out on 30% of Your Credit Score if you don’t have a Credit Card. Student Loans don’t factor in to the Components of a Credit Score at all.
Many of You have accrued a bunch of Student Loan debt that You would have avoided if it had to be put on a Credit Card. For some reason, we’ve convinced ourselves that Student Loan debt is OK…? Why? If you wouldn’t put it on a Credit Card, then don’t put it on Your Student Loan!
Lastly, Student Loans are very permanent. You will have to pay them back no matter what happens. There are even Court cases where someone got in an accident, became a quadriplegic and still could not eliminate their Student Loan debt in Bankruptcy. However, people who make $200,000 per year are deleting their Credit Card debts in Bankruptcy Court all day long.
Credit Card debt is safer because it is more Flexible. If You can’t get a job or have another hardship, You always have Bankruptcy to help You out. Not the case with Student Loans. When it comes to financing Your education, use the Credit Cards FIRST and the Student Loans as a last resort… not the other way around. Either way, just remember, Your Credit Score can be a financial tool, especially if You have a good one 🙂