Credit Trap: What They Dont Tell You About Credit Cards In College
In industrialized nations, going into debt starts early. It's easy for an eighteen-year-old to get credit cards and fall into debt, especially if they're headed for college. I remember my first year in college as a 17 year old. Credit card offers were plastered all over the university campus. I don't know what saved me from falling into the credit trap when I was in college but many of my friends were not so lucky. Many of them started out by using credit cards for textbooks, then stereo equipment and clothes. Then the next thing they knew, they were drowning in credit card debt. No one told them what they were getting themselves into.
Often, credit cards that are geared toward college students come with very high interest rates. Credit card companies say that this is due to the fact that students often have limited credit histories and that they have a higher default rate than other groups. However, what credit card companies don't tell you is that young lives are being ruined by credit card debt due to dropping out of college, bankruptcy, job rejections (due to poor credit histories), loan denials, inability to rent apartments, professional school rejection, and even suicide. A leading expert on the credit card industry reports about a number of these incidences including the suicide of some college students due to credit card debt in his book: Credit Card Nation.
I think there should be a law against openly marketing credit cards to young college students. However, the situation is quite different; credit card companies are often given free reign in college and university campuses to market their wares to unsuspecting college students. And what about those ubiquitous student loans that are often pushed at college students? Financial Aid officers make it far too easy for students to sign on the dotted line. "It's a low interest loan", they say. "You don't have to pay it off until you graduate", they say. But what they fail to tell you is that student loans and credit card debt can put you in chains for years for which you cannot afford to make one financial mistake or you and your family could be put out on the street. Furthermore, none of us know what is promised for tomorrow. We don't know if we will be healthy or sick; nor if we will get that well-paying job after graduation from college. Speaking of getting a well-paying job after graduation, another thing they don't tell you in college is that it may be a good idea to check your credit report BEFORE you go out on your first job interview. What does a person's credit report have to do with getting a job you may ask? Well, a new trend in hiring these days is that many employers are checking potential employees' credit histories first before they consent to hiring you (great, isn't it?). So, just what are they looking for when they look into your credit report? Well, my guess is that they probably will be looking at how much debt you owe and your payment history. If what they read from your credit report indicates that you are a credit liability, then chances are you may not get that job you wanted. These are just a few of the many truths that they don't tell college student about credit card debt before they sign on the dotted line. A prepaid debit card is a MUCH better alternative to a credit card for a college student because a prepaid debit card actually helps you to stay out of debt as the money you spend is your own. Not only that but they are also useful tools for teaching college students financial management skills. And of course, nowadays, there are a variety of debit cards available including debit cards issued by the two major names: Visa and MasterCard. So, if you are a parent of a college student, be sure to educate your child about the dangers of credit cards debt BEFORE he heads out for the college campus. And if you can, why not consider giving him a prepaid debit card to send him money while he is away at college? For more information about Prepaid Debit Cards, check out THE definitive guide to prepaid debit cards of all kinds including: prepaid mastercards, payroll debit cards, debit gift cards, virtual credit cards, offshore, US and international debit cards, at: http://www.debit-card-guide.com. Permission to reprint with full attribution which must include this permission text.
Related News
Credit crunch: UBS piles $7.5bn on to its write-down bill - guardian.co.uk
Pawn shops booming in the credit crunch - Sunday Herald
Pawn shops booming in the credit crunchSunday Herald, UK -2 hours agoHaving fallen from 5000 in the early 20th century to around 800 thanks to improved credit terms and job security, Milligan said that there has been a 10% ... |
When Credit Gets Tight, a 401(k) Loan Becomes Tempting - New York Times
Bank gives credit - and donation - to Mission anti-development efforts - Bizjournals.com
Credit Card Overhauls Seem Likely - New York Times
Improved credit score could mean big savings - Chicago Tribune
Aryty explores phone credit service in India - The Statesman
Aryty explores phone credit service in IndiaThe Statesman, India -3 hours agoA US-based overseas pre-paid phone credit service, Aryty, is exploring the Indian market to facilitate calls and SMS chat to the USA and Canada. ... |
CGFS calls for credit ratings change - Financial News
Using credit wisely - Hindu
Using credit wiselyHindu, India -4 hours agoDespite the high risk of debt trap posed by credit cards, I am an optimist who believes that access to credit in a convenient, card-based form is probably ... |
Crisp snares the ball, but doesn't get credit - Boston Globe
|
|
 |
|
|
RELATED ARTICLES
Important Things to Know About Divorce and Credit
Joint debts remain joint debts.
Student Credit Cards
With graduate debt averaging over £12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain. Unlike many standard credit cards, they are available to people who do not have a regular, minimum income and credit history. They often come with tempting offers including low rates for an introductory period, shopping discounts and free CDs. Flexing student plastic has the additional benefit of creating a credit history that can be used to support future loan and mortgage applications.
7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need
Prepaid debit cards are great financial tools and may be just the financial tool you need. Here a seven compelling reasons why:
Is Your Credit Score Costing You Money?
Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don't know about your credit could be costing you money.
Borrowing on a Credit Card
One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. However there are two broad areas that you should look at:
What is a Credit Report?
Ever wondered what is a credit report? If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report. It is full of information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy.
Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report
Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).
Balance Transfers Introduction
The main benefit of balance transfer is a money-saving one. In the competitive credit card market an increasing number of companies are offering a 0% interest rate for a fixed period on balance transfers made by new customers. This allows new cardholders to make considerable savings in interest repayments. Interest free periods vary and certain credit card issuers extend the 0% interest rate offer to cover new purchases, it is worth taking great care to compare balance transfer offers well before deciding which one to choose. Some companies offer lower than average interest rates on transferred balances for the life of the balance transfer. This may be good news for card users who are not planning to pay back credit card debt in the short term.
What Is A FICO Score?
A credit score is most commonly known as a FICO score. FICO stands for Fair Isaacs Corporation. It's a company that developed the credit scoring software used to evaluate your credit worthiness.
How You Can Avoid Becoming A Victim Of Identity Theft
To reduce or minimize the risk of becoming a victim of identity theft or fraud, there are some basic steps you can take.
5 Steps You Can Take to Get Paid!
There are always some companies that have past due invoices and can't seem to get them paid. They might be quietly waiting to get paid not wanting to contact the client for fear of appearing "desperate". Sometimes a big part of the problem is no response, it is bad enough when you are not getting paid, but when orders keep coming in and you are not getting any acknowledgement to your collection efforts, you just can't keep processing orders.
Home Loans ? Repair Your Credit Before You Buy
Before you take out a home loan or make any major purchase, you should be aware that any prospective lender will want to take a look at your credit report. Your credit report is a record of all of your past financial dealings, and any loans, credit cards, judgements, bankruptcies or other major financial transactions are listed there. Along with your credit report will come your credit score, which is a three digit number between 300 and 850 that represents a distillation of all of the above. That score represents your entire financial life, and your ability to obtain financing for any major purchase depends on having a good one. What if you don't have a good record? Should you go to one of those companies that promise to repair your credit? What you should do is repair it yourself.
Collection Agency Secrets for Collecting on Bad Debt
Getting worried that one of your clients, customers or patients will never pay? Have you given up on a customer who's essentially said he won't pay? Congratulations--being stiffed by a customer or patient is a milestone in the growth of a business or medical practice. But even the most hopeless of bad debts can sometimes be collected-collection agencies have been doing it for years. Here are six of their secrets.
Why Is It important!
Your credit is the most important thing you have other than your breathe. There are three types of people in this world. There are those who have excellent credit. Those who have OK credit and those who have bad or no credit. Yes each of the above individuals has there own trials to deal with. Let us start by defining what each of the above can and can not do.
Like It Or Not, You Have A Score To Settle! Part 1
Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring. And, its impact on your financial future can mean more to you than a college degree.
Practical Suggestions for Protecting Yourself From Identity Theft
It's no surprise that thousands of Americans are victimized by identity theft each year. Last year more than 9,000,000 people were victims of identity theft amounting to some $45 billion dollars.
Are 0% Credit Cards Reaching Their End?
Are Credit Card companies starting to feel the pinch? We all know that the Credit Card companies make their money by charging us interest on the money we borrow. With all the 0% balance transfer offers that we have seen over the last few years its no wonder these companies are concerned they aren't making any money. Many customers who take advantage of these offers move once the 0% period has expired.
What Is A Credit Report?
Even if you have heard of a credit report, you may not know exactly what it is. If so, this credit report article is for you. Learning about your credit report is important in any campaign to eliminate credit card debt and obtain a good credit status. So, you should at least know the credit report basics.
Defeating Credit Card Debt With Self Control
Credit card debt is a major social problem in some Western countries. To rid yourself of credit card debt, it is best to recognize the problem as both a social and individual problem.
Are You The Only One Using Your Name?
Identity theft has become an epidemic. Millions and millions of purses and wallets are stolen everyday and many of them are not just taken for the money inside. Thieves can use your credit cards to buy whatever they want to and whose credit does it ruin? Yours. Now, you are probably thinking about how easy it is or you to cancel your credit card, and you have protection through your issuer, but do you realize that by using your drivers license these thieves can get a whole new credit card? One you don't even know about? If this happens to you, you will find that it is anything but easy to fix. Proving that your identity has been stolen can be extremely difficult to prove and getting your credit back up to snuff is next to impossible.
|
