| |
| |
|
Credit Information |
|
|
|
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.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
What Are The Most Common Credit Card Mistakes? Now in a world with so many easy to get credit cards it can be easy for someone who is a first time credit card holder, or even someone who has several credit cards in the past to make mistakes when using the card.One of the most common mistakes when using credit cards is to use the credit card to make purchases of things you are not really able to afford. Establishing Credit - What You Need To Know Part 2 In my previous article "Establishing Credit - What You Need To Know Part 1" I discussed the need for a good credit history and what lenders were looking for prior to loaning an individual money or additional funds based on their credit history. This article will go into the necessary steps someone needs to take in order to initially establish their credit history. 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. Credit Cards and How To Choose Them: It may seem like a simple question but its important to take into account a few factors when choosing your credit card. If you are in the enviable position of being able to pay off your card every month then you are amongst the few. New Credit Advice: Dont Pay off Those Credit Cards! Credit needed for real estate mortgage financing differs from credit needed for consumer loans. If you need help getting a home mortgage, these credit tips will help you. Why Americans Find Predatory Lending Offensive "Menis - the author translates as "indignant rage" - It is the kind of rage arising from social betrayal that impairs a person's dignity through violation of "what's right." (p21), Achilles In Viet Nam - Combat Trauma and the Undoing of Character, Jonathan Shay, M. Good Credit Is a Necessity for Everyday Living Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these consumer loans, a great credit report makes your life easier. 4 Steps to Creating Good Credit As a consumer you've learned the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or searching for the best deals on insurance, your credit worthiness will be judged by your credit rating or credit score. Low Interest Credit Cards Have Many Advantages When credit cards are used wisely they can be very beneficial to the consumer. A low interest credit card can be exceptionally beneficial. Identity Theft - Who Would Want Mine? With all my bills who would possibly want my credit? Let them steal my identity and pay my bills! Unfortunately, that's not the way it works. Many of us mistakenly believe that identity thieves hit only the wealthy. Credit Counseling: Is it Really Necessary? Not everyone has a positive experience with credit counseling. Potential creditors often frown upon consumers who are going through credit counseling, denying them credit or sticking them with elevated interest rates on new lines of credit. How to Improve Your Credit Rating So you got into debt, had problems but you got yourself back on your feet through hard work and sacrifice and how are you rewarded? A Bad Credit Rating.You would be forgiven for thinking thats not fair and why did you bother sorting yourself out if your hands are still tied when it comes to applying for anything financial? There are ways to improve your credit rating and get back on track completely. Are you paying higher interest on your credit cards than you think? Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to 27. Harassment of People in Debt by Creditors HarassmentHarassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970. It is often difficult to know what to do when you feel a creditor is not dealing with your account fairly. Bad Credit Loans For Those Who Seek Alternatives for New or Old Car You can still save money on a Bad Credit Loan by comparing rates, checking out multiple policies, and negotiating with lenders.Getting a Bad Credit Loan doesn't have to be like basic training. How To Boost Your Credit Score Years ago your credit score was a big secret, known only to a select few such as your mortgage and credit card companies. In 2000, Fair, Isaac Co. Manage Your Credit Wisely Getting your first credit card is a big deal and all young people look forward to it with bated breath. We wait for years to be able to apply successfully for out own credit card. Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions What are the avenues available to businesses with weak credit profiles or to companies pursuing credit transactions that are perceived as too risky by credit providers? Many companies apply for credit at banks, finance companies or equipment leasing firms and are routinely rejected due to the high degree of perceived credit risks. When approaching a credit provider, it is helpful to understand what can be done to reduce the risk of a credit transaction in the eyes of the provider. Bailiffs & Council Tax - Knowing What To Do This article is about bailiffs who may call trying to collect Council Tax or Community Charge (Poll Tax) arrears. If a bailiff has contacted you to collect another sort of debt the law might be different. Tips for Choosing a Credit Card Company Credit Cards are essential for any consumer today. However, when choosing a new credit card company, many people do not know what to look for.
|
| home | site map |
| © 2006 |
