Why Are Credit Cards Important For College Students

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

Since credit cards have become easily accessible on campuses, students can find themselves in financial distress very quickly. The conflict with credit card use is that it has created a distinct way to generate instant gratification among consumers, specifically young borrowers. Due to this point, students have become an easy target for credit card offers. With heavy solicitation from financial institutions and retailers, students are given quick access to funds with little education of how interest accrues, fees associated with cards, and the lasting effects on their overall credit. Since solicitation is used on college

College debt can stunt most students from pursuing their college dream and going to their school of choice. Students get scared of the word debt and the numbers that they would be dealing with outside of college. Students are putting aside going to their dream schools because of the fear of how much debt they will get into after college. There are many reasons why people don’t pursue college, or just from not being able to afford it. Students go back and look at not going to their dream college or college at all and regret not taking the challenge and going with what they always wanted to do. Some students experience not being in debt after college and why they think college tuition is right where it needs to be, but others will make shocking choices to not be in debt. College students are choosing not to pursue their dream college or college at all because of finances they would be dealing with after college, debt.

Going to college may get students an education, but may cause their parents or legal guardians to lose everything they have worked for in the process. While trying to stay up to date with their student loans, they may fall behind on all their other bills. You may even lose your home because “you cannot make your mortgage payments for fear of missing a student loan payment or two” (Beauchamp and Cooper 539). They apply so much pressure on how it is important to pay off your loans that “you struggle to make your car

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

I the article, “The Credit Card Company Made Me Do It!” -The Credit Card Industry’s Role in Causing Student Debt” by Carlos Macias. What Carlos writes about is how much College students go in debt when they use credit cards. He talks about how credit card companies prey on students who are in college because they don’t know what how to handle a credit card. He wrote in the article, that the industry makes billions of dollars in profits, and many students are drawn in by the advertising credit card companies use to make college students feel like its easy for anyone to own a credit card. He even said students may even feel pressure from family, peers, and themselves to be responsible adults and try not to live off their parents. Carlos also

Over the years, the cost of college has hastily increased and the students of this time face a lot of prices to pay; the main two expenses to pay include tuition and living. According to an article by Laitinen, “more than two-thirds of students graduate with debt. And the average amount of debt owed is about $30,000.” (“College Credit? Kill that”) This means that the average person who attends college--whether it be a community, public four-year, or private four-year school—graduates with $30,000 in debt. The amount of debt that these students have when graduating from school is highly important because not only is it debt in general, but it also contributes to future issues the students may have in their financial lives. For example, “…an

According to the retired CPA I interviewed, the three most important concepts for a young college student to understand are: (1) Credit History and Credit Scoring, (2) Financing Charges, and (3) the Annual Percentage Rate (APR) of Interest. As they relate to considering which credit card to use, my interview subject suggested that the most important factor is how using that card might affect my credit history in the long term, what the financing charges could be on purchases that are not paid off immediately or very soon after the initial purchase, particularly as a function of the APR.

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.

Some people say Credit Cards, are good but then again some people don’t agree on that. I am one of those people who don’t agree that college kids should not have Credit Cards. Why, because we are not responsible yet. They can’t pay off their Credit Card and they use it for the wrong reasons.

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

Money is a necessity in life and is a constant worry for college students especially when you take out a $10,000 loan. Financial aid has replaced studying as the biggest worry for college students. The objective of college is to learn and grow as a person, but is limited by financial capabilities which is a big problem for the U.S. education system and prices continue to go up. Main focus is having to focus on rigorous studying, students may also have to work to stay in school. A student is paying college through a $10,000 loan and working a part time job 20 hours a week. John wonders if getting a credit card will help him financially. The best solution is to attain a credit card that has student benefits included and will make it easier to protect and keep track of your money.

Credit cards can help kids in emergency situations. Kids can not be expected to carry enough cash for some types of emergencies. For example, when Robert Jones's car suddenly stopped on the way back from his swim meet, he was able to call a tow truck and could pay for towing when he got to the repair garage. Similarly, when Amber Postovich ended up with no way home from a party, she was able to call a cab and drive everyone home instead of riding with a drunk driver. As you can see, if these kids did not have there credit cards they would have come face to face with a dangerous

Students are graduating with an enormous amount to debt. This is a perfect reason to stop marketing credit cards on college campuses. The average outstanding balance on graduate student credit cards is $8,612, an increase of 10% from the 2003 average of $7,831 (Nellie Mae, 2007). This shows the trend that students are graduating with more debt than just their student loans. Students should not be worrying about any other debt after graduating. With credit card companies preying on students on campus, students will get these credit cards and ruin their financial future after college. Students which are 4 year undergraduates that borrow to pay their education, graduate with an average debt of $24,651 according to The Smart Student Guide to Financial Aid on www.finaid.org. That total with the average credit card debt equals $33,263, which is double the annual income of a minimum wage worker in the state of Maryland. Students will more than likely make less money a year than the total amount of debt they accumulate in college. Why then have credit card companies on campus dimming the potential light these students

College students are typically new to credit with no previous credit history, but banks are more than happy to start a relationship with a promising first-time customer. Almost every bank has a special student credit card offer to attract students.