Credit Card Tips
For College Students
Making Credit Cards Work for You
Now that you’re a college student, you’ve probably heard from a lot of credit card companies offering you
what seems to be a great credit card deal. While having and using a credit card wisely is a common tool to
build a good credit history, falling into a credit card trap can ruin your credit for a long time.
Why should this matter? Credit card companies have been successful in aggressively marketing credit
cards to college students. According to a 2005 study published by Nellie Mae, a student loan company:
• An estimated 76 percent of undergraduates carry at least one credit card.
• Fifty-six percent of all undergraduates surveyed for the study reported obtaining their first credit card at
the age of 18.
• The average outstanding balance on undergraduate credit cards was $2,169.
• Seventy-nine percent of undergraduate credit card holders regularly carry a balance on their cards,
paying interest on those balances which increases the amount that must be repaid to the card
company.
It’s no secret that paying off credit card debt can be difficult. The more you owe, the harder it is to get out
of debt. And with credit card debt, paying your way out can be very expensive.
Good credit can open doors for things like renting an apartment, getting a loan for a car, or even buying a
house. Bad credit can put even the most basic essentials out of reach and make borrowing money more
expensive, or in the worst case, impossible. A mistake you make when you are 18 will stay on your credit
report until you are 25.
Whether you’re considering your first credit card, or you’ve been around the credit
card block, here are some tips you can use to build and maintain strong credit and
make a credit card work for you.
Tip # 1: Beware of the hard sell, freebies, and the “easy credit” traps. You’ve
probably heard these come-ons:
• Gotta have it!
Credit card companies love to make you think a credit card is i