Enlightening Students About Credit

Credit card companies seem to be growing by leaps and bounds. They are appealing to all kinds of people as well. If you thought that credit cards were available to only people with jobs, think again. Credit card companies are starting young these days. Who is their target? High school and college students, of course. As it turns out, if you are a student, you can avail of a credit card. In fact, that is the only time when you can secure a credit card despite being jobless. And college students love the fact that they have the option of spending freely.

Now that we have established that credit card companies are looking to reach out to increasingly younger people, one question arises: How are they attracting the student crowd? Well, student credit cards are marketed differently from other kinds of credit cards. In these cases, the credit cards come with a bunch of teasers that make it easy for the students to afford the card. Thus, there may be interest-free periods. There may be an incredibly low rate of interest. After all, students do not have a terribly stable income. To land them with an unnecessarily expensive credit card offer would mean the failure of that offer.

However, this is not to say that student credit cards have no negatives. Of course they do. For instance, defaulting on credit card payments could result in the suspension of all the bonuses that were being given. Default just once and that unbelievably low interest rate can rise to almost thirty percent. Moreover, students are not necessarily known to be the best caretakers of their money. In fact, when we think about groups that tend to waste their money, the image of students is one of the first ones that come to mind. Moreover, living away from home can result in higher expenses which the student may have trouble paying for.

Sometimes there is no getting away from piling credit card debt. However, if you are a student with a newly-acquired credit card, ensure that you will curb the itch to spend more than is necessary. Using your credit card prudently is the best way to ensure that you do not get caught in the web of credit card debt. Remember that once you do graduate from college and get a full-time job, you will have many other expenses to take care of. At such times you would not want to be landed with the extra baggage of credit card debt.

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