Allowed Credit Cards

Credit cards have become increasingly popular world-wide, making it easier to buy now and pay later but are they actually helping or hindering someone’s credit? “Maxed Out” by James D. Scurlock demonstrates how credit cards can hurt someone’s credit, while “Why Won’t Anyone give Me a Credit Card” by Kevin O’Donnell demonstrates how someone may have financial stability to pay off a credit card, but still be consistently denied one by the credit card companies. Owning credit cards is not the problem; the problem is being irresponsible with it.

Society knows that they are not fully developed and will therefore make mistakes, so there are certain policies that protect them from the ramifications of their actions. A teenager needs the permission of their parent or adult guardian to get a credit card. Credit cards belonging to a minor are usually linked to a parent's account. As much as this seems a measure to protect teenagers, it is also to protect the credit card companies. When a reckless teen can't pay their bill, the parent ends up with the charges! In fact, last Christmas, my friend went a little overboard with buying presents for everyone. She ended up spending seven hundred dollars on "her" credit card. Obviously, at the age of fourteen, she did not have a job or any way to pay for all of the gifts. Her parents were stuck with the bill, and the credit card went into the shredder

Credit cards can ruin any financial situation if used improperly. Let’s look at what our two financial authorities think about them. Dave Ramsey is completely against the idea of using credit cards. Being a devout Christian, he often finds his ways of financial teaching through The Bible. Proverbs 22:7 states “The rich rule over the poor, and the borrower is slave to the lender.” You are charged a premium for using a credit card in the form of interest. While you can pay off credit before the interest is charged, Dave insists that many people do not pay if off in time. It is better to get rid of the enticement altogether than to play with the idea of using a

Barbara Pinto, professor of Business Law and Management at Penn State University states that “[colleges are] an untapped market [...] and [credit card companies] go after students as they go after any market” (Kienzle). Students sign long-term contracts with little or no previous experience in managing their finances and with little knowledge of the complex system of variable, fixed and introductory interest rates. In fact, in a recent study of high school seniors, students averaged a score of 57% on personal finance skills (College Students). This is a financially dangerous situation for the student because credit card companies are businesses that are fueled by the profits they earn through interests rates. To further compound the problem, “half of all college students with credit cards don’t pay their balances in full every month” (College Students). Consequently, the amount of student debt increases and so do the risks associated with the debt. The longer a student takes to repay debt the more expensive the account becomes. It is in the company’s best interest to extend the account as much as possible. (you do a good job of providing and explanation and analysis of the information, making it easy for the reader to see how it supports your main idea.)

I grew up in a household where personal finances and building good credit was not the main topic of discussion at the dinner table. I was well over 21 years of age when I really started learning anything about credit and how to use my credit score to my advantage. To be honest, my first real encounter with being taught about personal finances and credit came from attending a network marketing meeting. Even though I was invited because of a business opportunity, I learned so much listening to this guy talk about regaining your wealth through your own personal finances.

“Strapped”, an extract from a book by Tamara Draut, takes a hard look at credit card debt and the harsh implications it bears on young people throughout their lives. Young people are swamped from the very start of their adult lives and can be forced to take drastic measures just to survive. Even though they have good intentions, they have little choice but to dig themselves deeply into the hole. Crippling credit card debt has been a concerning issue for decades and is consistently worsening due to an ongoing conflict between card companies, young people, their parents, and their financial values.

In an article written by Jonathan Burton titled “What Teens Need to Know About Money; How to Have That ‘Big Talk’ About the Financial Facts of Life” the author is a supporter of getting credit cards in the hands of the young generation. About 35 percent of bankruptcies filed are from people younger than 35 years old (56). The author has the idea that by giving the younger generation credit cards now can help save them from bankruptcy by teaching them how to manage their money. Many people going into debt due to the fact they simply do not understand how a credit card works or how to manage their spending. Teaching the younger generation how to manage money with a credit card can save them from being in poor financial circumstances in the

In the world of personal finances, credit cards play an important roles in lives of many people. Sometimes, it's out of choice while other times it happens out of necessity. Regardless of why it happens, the numbers surrounding credit card debt are worthy of scrutiny in order to determine whether having or using credit cards is a sound financial decision.

The article is about why young Americans (millennials) are afraid of credit cards, and why they do not use them. Americans with credit card debt under the age of thirty-five has dropped to the lowest since 1989. Since the financial disaster in 2008, older Americans have lowered their credit card debt. However, millennials’ credit card debt has dropped faster than any other age group. Young people became scared of credit cards because they do not want to owe money to companies like their parents were or are. If millennials continue to use credit cards less, this will hurt the economy’s growth and the financial system. Since millennials refrain from using credit cards, they will lose out on building credit. Building credit brings advantages like

When President Obama signed the Credit Card Act of 2009, this put an age limit on people getting a credit card till the age of 21 years and I think this is a genius idea. This bill was had to be passed to protect young teenagers from being exploited by the credit card companies. Before this act a teenager could get a card and buy everything they wanted for example the new jordans or nike shirts like everybody else who can afford it, but most teenagers “Know little to nothing about managing money”(CreditDonkey). This means most teens would spend money that they do not have so the credit card companies can charge them interest rates and put teens into debt. With this Credit Card Act in place a teenager can still get

Although the reliance on student loans continues to increase for college students across the nation, the vast majority of American teenagers are not required to attend and complete a Financial Literacy course before graduating high school. According to Jillian Berman, only five states scored an A on the 2015 Report Card on State Efforts to Improve Financial Literacy in High Schools, and those same five states are the only states in the country that require students to take a dedicated semester of personal finance courses before graduating (Marketwatch.com). There is an obvious problem with the state efforts to properly educate finances when 14 out of 50 states rank in at a failing grade. Money is an essential asset to life on Earth, and proper education on financial management is vital for the basic requirements to sustain life. Education on how to manage money in order to afford food, shelter, clothing should be the main priority of the Financial Literacy courses. More in-depth are topics

Financial literacy is essential in living in today’s society, therefore it should be taught at a young age because people have been going bankrupt more than ever before. According to Kelly Walsh, “Students between ages 18-25 have at least one credit card. By the time they graduate half of them have four or more credit cards that have an average balance of $3,000” (Walsh). If students were taught at a younger age how credit cards actually work; they would better understand the consequences of debt. For instance, if students were to research different credit

A young adult may be shocked to learn that a credit score can either set you on the right track when financing or undermine your finances. The graduate should learn how to maintain a great credit score and have the knowledge of the results it comes with. A credit score can help the adult determine how much interest is going to be applied when making big purchases. Furthermore it can also help the adult if there's ever any intention of buying a car or house. Unfortunately a high school does not teach students the benefits of good credit, or how to even maintain good credit as a result of lack of knowledge this can cause young graduates to pass their credit limit and have a bad record of credit score.

You are a student who has just graduated from high school and currently have a joint credit card plan with your parents and you have yet to apply for your own credit card. Whether you have a college fund or not it is a good start to save and maintain a good financial credit by paying bills on time. By the time you get to college it would be smart to make sure you are going down the right path of having good financial credit as a freshman in college. At the prime age of 17 or 18, many teenagers start their journey as an adult and while in the process have the ability to gain a new form of financial independence from their family. Expenses that were once covered by parents when we were children are now up to us to budget and to deal with. As

The question of whether credit card companies should market on campuses or not, brings many different opinions, some of which are driven by personal experience and some that are driven by profit. There are those who do not agree with this because they know what they have gone through with credit card debt. There are also those who say they should market on campus because they are adults and contribute to the company’s profit. Even though students are adults and need to earn credit, credit card companies should not market to college students on campus because they are too naive and this results in graduating with too much debt.