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What is the Right Age for Making Credit Card Deals?

2007-09-14

Students are easy to fall under the influence. A bright ad, an appealing slogan, and lots of promises...all these will certainly attract attention of youth folk. Their addiction to credit card deals is sometimes compared with drug addiction. Young people prefer to go with the flow and accept the decisions of the others. This way they become a wax in lenders' hands because of their trustfulness. Watch out! Credit card companies have iron hands in velvet gloves. Experts assure that college years are not the right time for credit card deals. What are their arguments?

It is so alluring to have plastics when you are a student. Credit card companies have a certain number of special offers for students. The point is that they regard you as easy money. Students cannot control properly their credits for the lack of mere experience. That's why they accumulate debts so fast, and most obviously, Dad and Mom will give them a helping hand.

To resist the temptation of credit cards is so hard! When you start a new life, you want to start your credit history as well. As a rule, credit card companies do their best to persuade you that one plastic won't do you any harm, and it will help to improve your social status, and so on, and so forth.

What they don't mention is the side effects like getting into debts, or higher interest rates. You will certainly know all this with the lapse of time. But I'm afraid it will be too late. To avoid credit misfortunes one should learn wisdom by the follies of others.

Let's face it! Credit card debt of the average college freshman amounts to $1,500. And this figure doubles by the time of graduation. Moreover, they have a student-loan debt that equals to thousands of dollars. Besides, the majority of students have more than one credit card. "It seemed so easy! When I was a senior I had eight or nine", says Carmen Barnes, 27. "I used the plastic for buying food, snacks and even gum. I didn't care too much about it. Once I spent $100 and had to pay back about $250." Feel the difference?

You may say, "All my friends use credit cards. Then there's no harm in that." A huge mistake! Students will learn this credit lesson when they see their bills, and it becomes clear that they spend more than they can afford.

To escape the credit card problems in future and develop healthy financial habits you may start gradually. Let's say with debit cards. For this purpose students open a checking account and most of them get free debit cards. How do they work? You can use them at the same places where you would use a credit card. And you simply cannot fall into debts because you spend money from your deposit. It's really a good training. Step by step you learn to plan your budget. This is very essential.

Since you've learned to be responsible for your spendings, you may start out with credit cards. To find the best credit card deals is not a big problem. I advise you to sign up for your first plastic when you are a senior student. When you leave school and get a regular job, you are of no interest to your lenders. That's it!

I don’t think that college is not a proper time to get your first credit card. I am a college student and I do use a credit card. I want to say, not all students have credit problems but only youngsters who pay little attention to fine print and use their cards always and everywhere without thinking. But I’m sure those are few in number. They just attract much attention of credit issuers and their mindlessness affect students-debtors’ reputation. That’s the end of the story!

It’s true that many students have problems with credit cards. They just don’t realize the responsibility! When I was a student I made a lot of financial mistakes and got into deep debts. It took me several years to rebuild my credit history. So, students THINK before applying for a credit card and pay more attention to your bills while using it. In this way you will avoid many problems and build good credit history that will help you in the future.