College Students Should Credit Cards Essay

Throughout the extract, “Strapped,” author Tamara Draut notes why today’s young adults have complications getting financially ahead. Along with student-loan debt, today’s college students may also leave with the burden of credit card debt. Draut argues that college campuses aren’t sufficiently regulating card companies on campus, therefore putting their students at risk for debt.

When you make any charges on a line of credit you will be subjected to interest rates that can increase your debts steadily over time. This debt can creep up on you without knowing too.

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

3. Many college students may be working with credit or debit cards for the first time in their lives, and without proper

One may decide to pay cash for everything but, there are reasons to focus on obtaining and keeping a good credit score. The first step toward understanding how credit affects ones’ life is to check the credit standing. One can get two of their credit scores for free on Credit.com. This completely free tool will break down the credit score into sections and give a grade for each. For example, how is the payment history, debt and other factors affecting your score, and get recommendations for steps that can be taken to improve ones’ credit. It is possible to get a free annual credit report from each of the major credit reporting agencies Equifax, Experian and TransUnion once every 12 months. This does not give the credit scores but, it does

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.

The purpose of usury laws was to regulate the maximum interest rates of loans. This law was created to protect borrowers from excessively high interest rates. It insured that lenders could not put the borrower in a situation where they were not able to fully pay off their debt. However, as said on investopedia.com, “In the United States, individual states are responsible for setting their own usury laws.”

Credit cards are one of the many factors that contribute to student debt. A larger proportion of college students rely on credit cards for paying direct academic expenses. ''This includes textbooks, school supplies, and tuition" (Min Zhan 134). Credit cards appear to be a great investment in college, but they are also problematic. Credit cards are related to higher levels of student drop outs from college. Student indebtedness are necessary given the rapid increase needed to meet the financial needs of higher education.

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.

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

First, we must blame ourselves for letting this debt build up. It’s so easy to just say “charge it” and deal with the money later. It’s so much more convenient to use a credit card then using our cash. In the April 2005 issue of University Wire, Dr. James Roberts conducted a study about the spending habits of students around the country. He found that students who used credit cards to pay for their books weren’t able to tell within $30, $40, or even $50 dollars of how much they spent compared to the students who used cash and were able to tell within a few dollars how much they

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.

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.