Should College Students Have Credit Cards
Your credit rating has a serious bearing on the course of your life. Having a good credit rating means more favorable interest rates when taking out a loan and can even make you more attractive to potential employers.
Just a few years back, credit card companies were giving out cards to absolutely everyone. You’d get credit card offers almost non-stop which offered low interest rates and high credit limits. Then, credit cards for college students were a big sector of the market. Credit card offers were mass mailed and all you had to do was fill out the application. People got on the bandwagon in droves, buying all of those things they couldn’t afford outright, but could make payments on.
If your folks didn’t happen to be geniuses about money and particularly if you’re still young, you might have problems taking care of your finances. If you spot that jacket that you just simply have to have, then you produce that card and forget all about that statement which will be coming in a matter of weeks.
Unless you were raised by an accountant or tax man, if you’re young, you may not have a good handle on your finances. If you see a great pair of shoes or a video game that’s on sale, it’s likely that plastic comes out of your wallet and you walk away with the goods. However, the bill does come at the end of the month.
It may surprise you to find out that these credit cards for college students are just as prevalent as they ever were; of course, the costs associated are far higher now. Remember that a single late or missed payment can result in your having a very high APR from there on in.
Many credit card companies don’t even ask you for all that much information before they will hand that card over to you. It is your responsibility to read all of that fine print; you need to understand all of the terms and conditions which are spelled out there.
Be careful when you apply for credit cards for college students. Read the entire cardholder agreement before you sign – you need to be confident that you can pay off any debt which you incur. If you find yourself faced with a situation where you max out your card due to an emergency, you need to pay three times the monthly minimum payment at least to get the balance paid off quickly. Used judiciously, a credit card can be a wonderful thing.
Filed under: Business