Most of the time college students not only come across credit card offers in the mail, but they also find
“I think credit card companies believe college students are naïve,” said Leslie Hidalgo, freshman Pre-Vet major. “They probably think we’re ready to be on our own and can handle it (credit cards), but sometimes we can’t. Some students don’t know what they’re actually getting themselves into.”
The promising buy now, pay later strategy hooks most students into applying for credit cards.
“Most college students are unaware of the little extras, such as interest, credit card companies put in,” said sophomore Nursing major Amber Sada.
In today’s world, students have become fascinated with the thought that they no longer have to save money to buy what they desperately want or need. They have the option to make their purchases on the spot.
According to money.com, if people pay the minimum on their credit cards, it will possibly take 20 years or more to pay them off, meaning more than five times the actual debt will be paid in interest. This website also says paying down the bills with the highest interest rates first is the key to getting out of debt.
Students also tend to use credit cards to help pay for school.
“When I first started coming to school, I really hadn’t done much about financial aid,” said Gina DeLaVega, sophomore History major. “So most of my debt did come from putting my tuition and books on my credit cards.”
Students with late payments are at great risk of damaging their credit report, which can affect his or her chances of landing a job or attending graduate school.
“At the graduate level, most students have to rely on loans for their educational costs,” says Julia Perreault, Director of Financial Aid at Emory University in Atlanta. “Without good credit, you can’t get the financing.”
Everyone with a credit card or contemplating signing up for one needs to understand how they actually work. Students must know that paying only the minimum balance each month will result in paying interest.
Experts suggest that students resist applying for multiple credit cards. Also, keep a record of all purchases made. Instead of using the credit card for objects that can be eaten, worn or listened to, reserve the plastic for emergencies.
Students may also consider a debit card, which draws funds from a bank account. You can’t overspend what you don’t have.