Every day, all over the country students at colleges receive waves of credit card offers in the mail. Studies show that on average, college students receive between four (4) and eight (8) credit card offers in their first week on campus. Some insurance companies even set up booths on campus that offer cards that come with gifts like food, t shirts and other goodies if they sign up right there on the spot.
Credit card companies know that credit cards for college students are a potentially high money maker for them. College students are just starting out, usually have either no credit or good credit and are very likely to sign up for the first offer they get. Some colleges are now monitoring credit card recruiting on campus due to presence of so many card companies at schools.
Credit Cards For College Students Don’t Have to Be Scary
College students should not fear credit cards necessarily, it is possible to find cards that are tremendously advantageous to cardholders. However, to find the right credit card, college students must be armed with the facts and do some serious research to ensure that the credit choices they make now are not going to haunt them later on down the line. Can you imagine being 30 years old and still making payments on a pair of shoes you bought while you were in college? It sounds ridiculous but for many people problems with credit card debt can create that very scenario.
Parents and students should know that many credit card companies specialize in making money off of the naive, including college students. Some offer incentives like free computers to help hide high interest rates and other fees. Students should always read the fine print that comes with a credit card contract before signing up.
Remember that they are not free money. In fact, they should be looked at as high interest loans that come with costly fees. Some of the most common fees associated with credit cards include:
- Finance Charges: The interest charge on the unpaid amount of your bill every month
- Cash Advance Fees: High interest fees in exchange for cash on the spot
- Late Payment Fees: Interest rates can be increased for paying late
The first step in finding the perfect credit card is doing your research. There are plenty of websites that offer a wealth of information and knowledge and allow you to compare credit cards offers side-by-side. Research done this way can save you time and energy and can be done from the comfort of your own home.
So remember. Be credit smart! Find the credit card that works for you, your lifestyle and your spending habits. Do your research and compare credit card offers online. Armed with this tool set you can’t go wrong!