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COLLEGE CREDIT CARD

When your son or daughter goes to college, it is quite likely that they will get a college credit card. Getting a college credit card is incredibly easy, as it does not require a co-signer or verification of income.
 
Almost every college student will think about getting a college credit card, and most of them will apply for a card. There are numerous companies that try to lure every student into getting a credit card. The problem is that college students often misuse their credit card instead of using it for emergencies or for building a credit history. They usually end up using the credit card for everything and have debt problems quickly.

In 2004, Nellie Mae, a major provider of student loans, did a study saying that 76 percent of all college undergraduates started the 2004 school year with a college credit card. The average outstanding balance on their credit card was usually $2,169.
 
To a college student, a college credit card seems like free money. They don’t realize that it is actually a loan and that the loan has to be paid off. The more they use their credit card, the more they have to pay back. The interest also causes the loan to get higher and higher. Soon, they are over their heads and they have destroyed their credit history for the foreseeable future.

How do the issuers of these college credit cards expect the student will be able to pay back?  Not only do these students have to pay their college credit card or cards, but their student loans as well. The combination can be deadly and they could end up in big trouble real fast.

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