Ramping up on Student Credit Card Offers
When I went to college back in the 90’s, I remember going to class and there would be tables set up in front of the school building. Credit card representatives had set up shop and were offering free T-shirts, water bottles, stuffed animals, bookbags, pens and anything they could in an effort to entice students to sign up for the credit cards they were marketing.
Fast forward to 2013 and fortunately credit card companies are no longer allowed to solicit students in this manner due to regulatory reforms. However, they are allowed to bombard college students with direct mail marketing. This is what is happening today. Companies are sending households with college students credit card offers left and right. Instead of giving out useless freebies like they used to, they promote their cards by offering rewards points, cash back on purchases ,credit cards with low or no annual fees or a waiver of the first late payment.
So, in addition to your heavy duty large student loan that you will inherit once you graduate college (if you weren’t able to get a full scholarship, which would count most of us), you have tons of opportunity to get into even more debt! Isn’t that awesome? The opportunities for starting out your professional life with a negative income is endless!!
Seriously, credit card companies want your money or the money you will make someday so be vigilant, be savvy with your hard earned cash.
The truth is it’s okay to get one of these credit cards, it’s a good way to build credit under your name. You need to do your research however and sign up for a card that has low or no annual fees and a low interest rate. Compare cards at sites like CreditCards.com and Bankrate.com. Keep the limit of the card you choose also low, say $800 to $1000 and don’t use it for everyday purchases that can quickly add up in a sneaky manner, like lunch or coffee. Use your card instead for legitimate purchases such as school supplies, books and maybe gas if you have a car. This way you build a transaction history. But pay diligently and try to pay before you start accruing interest charges so you don’t end up paying more for what you purchased.
Getting a card is a good way to start building an excellent credit history, but don’t go overboard on your borrowing and never pay late. School might not teach you how to handle your finances but there is no denying that this is a skill you will need. It is essential, so start building a solid foundation now for a stronger and more secure financial future for you and your future family.