A quarter of all college students amass more than $10,000 in credit card debt by the time they leave college. Pretty scary, right? Maybe you’re one of them, on your way to building up massive credit card debt, in addition to your student loans.
You may figure you’ll deal with it once you get that great job when you graduate. But be forewarned: you’ll have other expenses, such as rent and deposits, utilities, and possibly a car loan. The last thing you need is thousands in debt before you even get a start in life.
You’re a Target
Once upon a time, you had to have a steady job for a few years and show evidence of increased financial responsibility before you could get a credit card. Nowadays, credit card companies target certain vulnerable individuals – such as college students. The rationale is that your parents will bail you out when you get into credit card hell; they also figure that since you’re young, they’ll have years of getting high interest payments from you.
Beware of Gimmicks
When you see a credit card company on campus trying to sign up new customers, it’s likely they’ve paid the university a fee to set up shop. Some may offer inducements such as coupons for restaurants or some kind of credit on your statement. They are forbidden to give away free tangible items, although some do and get away with it.
Credit card companies are also forbidden to sign up persons under 21 without a steady income or a cosigner, but there may be some dispute about what constitutes a steady income.
If you really need a credit card – and we don’t mean just for purchasing all the cool stuff you can’t afford on your current budget, but rather for paying bills for your rentals in Athens Ohio, or for purchasing gas and food – then shop around. Try to find one that doesn’t charge an annual fee and doesn’t have a high interest rate. And once you find one, do try hard not to be one of those one in four college students loaded with debt when you graduate.