<p>I got this list so thta college students will think wisely before they rack up in a pit of credit card debt. (I personally don’t have a credit card.)</p>
<p>*1. The average college credit card interest rate is far in excess of the average credit card rate for working adults.
A common college credit card interest rate is almost 24%, a credit card rate for working adults averages about 14%. A wiser use of your money would be to save or invest it. Use the Credit Card Calculator at MsFinancialSavvy.com to figure out how much money you would save if you invested your credit card interest. </p>
<li><p>College credit card penalties on monthly late payments and/or going over-the-limit can be excessive.
The credit card companies can charge a penalty fee if you are late with a payment and another penalty fee if you go over your limit. College credit card late fees can run 3-4 times higher than those for working adults. One college student told me her monthly payment went from $30 a month to $300 a month, after late payment and over-the-limit penalties were applied. </p></li>
<li><p>Credit card use encourages many college students to purchase items they don’t really need, tossing a credit card on the counter makes purchasing seem easier then using cash.
Don’t be fooled by the ease of tossing a credit card on a counter. When the bills arrive in the mail that ease quickly turns into difficulty, as you have to sift through your checking account to find money for the balance or monthly payment. </p></li>
<li><p>Credit cards charge interest on top of interest.
One reason why you end up paying far in excess for an item when you charge with your credit card rather than paying for it with cash, is because of compounded interest. When you carry your balance from month to month, you will pay interest on the current months balance, every month. To avoid paying compounded interest every month, only charge what you can pay off each month. </p></li>
<li><p>Credit card balances skyrocket quickly when you don’t decide the purchases you will make in advance, and stick to them.
If you feel you must have a credit card, dont take your credit card everywhere you go, so your use will be kept to a minimum. Credit cards should be used sparingly. If you want to go on a vacation, save up the money or borrow it from your parents. If you need new clothes, save up the money, and buy them when you have cash. </p></li>
<li><p>You will have a tendency to spend more if you have more credit at your disposal.
If you own only one credit card at a time, rather than say two or three, you will have a tendency to purchase a lot less. If you purchase up to the limit on your credit card, discipline yourself to pay it off, or at least pay down the balance, until you use it again. But, whatever you do, do not get another credit card so you will not have the tendency to acquire more debt. If you have to charge occasionally, put away the credit card and try to pay off the balance before you use it again. </p></li>
<li><p>College credit cards can ruin your credit for years to come.
It is important that if you obtain a college credit card, you handle it responsibly. After graduation you will need a job, a car, and after a few years, you may consider purchasing a new home. To do all of these things you will need a good credit history. Many employers will obtain a credit history on new employees. Employers want to hire honest employees, and to them, paying your bills on time is one factor that indicates honesty.
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<p>The people who rack up lots of credit card debt are stupid and don't know how to use money. I know a person who maxed out several credit cards years ago and his credit has been ruined ever since. I don't think he ever intended on paying the monthly bills. He just saw it as quick and easy money.</p>
<p>I'm 21 years old and I have one credit card that I got in 2001 as a college freshman. It is very convenient. I use it for paying for college textbooks, gas, groceries, computer, etc. Better than carrying cash and more secure than a debit card. But the key is to not charge up more than you can pay back. That is simple common sense, which many people don't have these days.</p>
<p>College Loans: My credit rating is excellent, partly because I pay my credit card bills. As a result, I was able to get some loans without a cosigner. Slightly higher interest rate, but at least I don't have to put the cosigner burden on somone else.</p>
<p>I just use a good old-fashioned Debit Card. No interest, now that's what I'm talking about! Not even a maintenance fee because I meet the bank's criteria to waive the fees! Plus, I believe as part of my checking account, I am not liable if the card is frauded, I need to check up on this, though.</p>
<p>The bank lady I was talking to a long time ago when I opened my checking account told me that owning a debit card is really the first step to obtaining good credit history. When I go to get a credit card, they will check up on me and notice that i have no overdrafts, etc. Besides, when I finally do get a credit card, I'd only go with the company that offered a plan with "no interest if you pay off the card each month".</p>
<p>owning a debit card is really the first step to obtaining good credit history.</p>
<p>Thats not at all true. Debit cards don't help your credit report at all. When you go to apply to a credit card, they will check your credit report, not your bank records. </p>
<p>I'd only go with the company that offered a plan with "no interest if you pay off the card each month".</p>
<p>um, the only way you can be charged interest is if you carry a balance over to the next month. If you pay the card off in full every month, you will never be charged interest, no matter what card it is.</p>
<p>Wow, I have been fed misinformation, that ****es me off. The damn bank woman doesn't even know what she's talking about. And then the only person who says that you don't pay interest if you pay it off in full is my dad...everyone else who's talked about it complains about interest....heh, I guess I now know who has and hasn't been paying the CC bills on time!</p>
<p>I don't think debit cards are safer. Someone stole my dad's debit card number and spent a lot of money on the Internet. He had to go through a lot of paperwork to get his money back. It is much easier to get a fraudulant credit charge reversed than a debit transaction. Basically, credit cards are more secure when it comes to fraud. One time a fraudulant charge appeared on my credit carda and I got a phone call within 20 minutes about it. My dad didn't know that he debit card number was stolen until he checked his account balance.</p>
<p>I got my first credit card when I was 13... granted my parents paid the bill each month but when I was 15 I got my own. I believe they are like cosigners but we were having problems with the fraud alert showing up too often because on one account there would be charges from Italy, California, and DC all in one day. Both my mom and dad traveled and we were constantly having to call up the company to assure them it was not fraud and to please unlock the account. Now we have separate accounts and I pretty much pay my bill in full each month but I use cash on small stuff so it's easy to record what I've spent and how much my bill will be. </p>
<p>Credit cards are fine and perfectly safe if you don't overspend... just don't think of it as an unlimited loan source... only spend what you can pay off.</p>
<p>check cards are just as secure as visa cards but they also work in debit mode. If you do a visa transaction (you will know because you only have to sign), it is processed and protected by visia just like a credit card except it gets deducted from your account. </p>
<p>Debit cards (or using a checkcard as one) require you to enter your pin number to complete the transaction. These are not covered by visa protection and shouldnt be used. Always keep your pin safe, dont use something someone can figure out and your debit card will be safe. It might be usable in visa mode, but then it is exactly like a credit card. Keep photocopies of everything in your wallet (both sides) so if it gets stolen, you can call and cancel right away.</p>
<p>That is fairly ambiguously worded...What I mean to say is to have a photocopy of your wallet's contents stored somewhere else...</p>
<p>As a college student, a copy in your dorm and a copy with your parents (for when you cant find it). As a traveler, a copy hidden in your suitcase and a copy at home where you can tell someone how to find.</p>
<p>My brother is the perfect example of the type of person credit card companies love to have grabbed by the balls. He says that he's going to go back to college after he pays his 15 thousand dollar bill. At the same time he goes out and buys stupid **** he doesn't need like rims because "they were a good deal". His excuse is that "everyone has debt." He seems to be stuck in some stupid materialistic mind set where he needs to have new trendy and useless crap even though he has no money to pay for it. Looks like he just loves being owned by his damn job... I expected something better from a person four years older than me, but then again we're almost polar opposites.</p>
<p>No, he actually has very good credit rating. For some reason he keeps trying to convince me that leasing a car is not bad because it will build credit. Why would I, as a poor college student want to lease a damn car and get stuck paying full coverage insurance along with a damn monthly bill for a card that I wont even use!? I just don't want to have any attachments to any job I have, feeling like I always have to work just to get by paying some ******* credit card company.</p>