Have you ever wondered why credit for students is so easy to come by? Well, often times credit card companies will send out mass mailings to invite new college students to sign up for their services. Usually, there are even a number of these agencies waiting to sign them up right at the open houses or orientation days right on the campus. The main reason for this, while some may think it to be sinister, is just to begin helping some of the students build on their financial future. After all, you cannot get good credit without credit, and these companies are offering a way for students to get their first card to start them on their way.

Unfortunately, even though these cards are issued with the best of intentions, the outcome is usually pretty grim. A large, almost staggering number of these first time credit card holding students will end up misusing their cards with the end result of not even being able to keep up with their minimum payments. Because of this, it may actually be a good idea if there were a bit of credit counseling that could take place before every potential sign up. Once the students have a better idea of how to use their cards to their advantage, they can avoid the problems of debt, which could end up hindering their financial future for years to come.

Can you just imagine how frustrating it must be for a young student to be dealing with credit card debt along with all of the costs of campus living and all of their student loans? Such a hefty amount of money being forked out every single month can put a dark cloud over the entire idea of credit for students.

Certainly, the best way for students to live smart with their credit cards is to first gain an understanding of how their particular account works. Know what your late fees are, pay attention to the date that your payment is due and always pay it on time. It can be easy to overspend when you have a credit card. This is why it may just be smart for students to only use their credit card for books or school supplies. Limiting your use can help you keep your balance down, while helping you maintain a minimum payment that is manageable.

Some students may even have their parents tell them that they should never spend over the amount that they can save up to pay off at the end of the month. This can help you a great deal by not having any extra interest of fees. Credit for students can be a wonderful thing as long as it is used correctly.

Copyright 2006 Market Signal Systems LLC

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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?

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Credit cards are a fact of life for the majority of people living in Western countries. For many, the ability to use a credit card responsibly without driving up the balances to unreasonably high levels is difficult to develop. This is all the more true among college students.

Over the past two decades or so, college and university students have been the target of aggressive marketing campaigns by major credit card companies. The object of the campaigns has been to convince students of the convenience of using a credit card for day-to-day transactions.

The trouble is, even more so than with the general populace, many college students have been shown to have trouble using cards responsibly. On the whole, many students lack the ability to make sound judgments leading to responsible card use. The result: studies show that the average college student with a card graduates with thousands of dollars of debt.

If you are concerned about growing credit card debt in a college student’s life, here are 5 tips for overcoming debt:

1. Immediately stop using the credit card(s):

Stop using the cards right away. Even though you are in the habit of using a card to make regular purchases for foods, sundries, gas, books, and other goods and services, you need to find a way to pay for everything with cash.

2. Start paying down the highest-interest cards first:

Now, it is time to take aim at the debt on your cards. If you have more than one, start by paying down the high-interest cards first. Doing so will greatly speed along the debt-reduction process.

3. Switch to a prepaid debit card:

Purchase a prepaid debit card. These cards carry the symbol of major credit cards like Visa and MasterCard, but they work like a debit card. You just pre-pay or re-charge/re-load your card with money whenever it runs low. Merchants will treat it like a credit card.

4. Sell any of your possessions that contribute to your overspending:

If you have expensive tastes that tempt you to spend beyond your means, it may be time to cut back altogether on your use of these items. Sell any items that are currently causing you to spend more money than you should – and use the proceeds to pay down your card balance.

5. Create a plan in Excel for paying down your debt:

An excellent way to track your debt reduction process is to build a plan in a spreadsheet program like Excel. Set monthly targets for yourself, then track your actual balances across all credit cards and see how you are doing against your target.

By following these 5 tips, you will be able to pay off your debt and start spending more responsibly. As you become debt-free, you will breathe a sigh of relief.

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Sometime around the junior or senior year of high school, the average student starts thinking about what happens after graduation. For many students the answer is college, in one form or another. The task then becomes to choose the college or university that will give the best experiences and the best leg up to getting a productive job after graduation. Entire industries have sprung up around helping high school students and their families to choose the college or university that is right for them. However, here are a few simple tips that can make the process easier and less intimidating.

First of all, remember that college is what you make of it. This means that each student can have an amazing experience regardless of where he goes to college. Whether your student goes to a small private college or a large state school, there will be opportunities for new experiences everywhere. The successful college student is not the one who goes to the best school but the one who decides to experience all of the positive things along the way. This means that the choice of schools is not as important as the college counselors would like for you to believe that it is.

Secondly, you need to choose a college that fits with your finances. If you cannot afford the cost of a small private college, be honest and say so. If you would prefer that your student spend a few years at a community college checking off prerequisites, then say that too. Finding a college that fits your finances is an important aspect of making a choice that is right for your family. A college that is out of your price range will leave you or your child burdened with loans long after the degree is completed and the first job is obtained.

In addition to finding a school that fits in with your finances, do not forget to consider all of your possible options. When everyone your student knows is going away to college it can be difficult to consider spending a few years at home taking advantage of the discount rate at a community school. However, this is an option that can be smarter in the long run than four years at a huge state school or a tiny private university. You should also encourage your student to test out of as many prerequisites as possible in order to reduce the total number of classes that she needs to take.

Once you and your high schooler have examined all of these criteria, there will probably be two or three schools that seem as though they would be a good fit. At this point you can take the time to visit each of these schools and see what they have to offer in person. Many schools allow prospective students to stay the night with a current student in order to get a firsthand glimpse of what college life is like. After visiting a few schools you will probably have a sense of which one would be the best fit for your family and your student. Going through this decision making process enables you to think through what you need in a college and what fits in with your family budget and lifestyle.

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Maybe for some good intention, people who offer credit cards for students are sprouting in various campuses nowadays. And despite of the bad publicity regarding credit cards you should as well own one as you may become a card holder for life.

It does not mean to say that owning credit cards is a safer financial option therefore you should consider some important points before affixing your signature to affirm the deal. Nevertheless, if used properly, credit cards for students can be your tool to develop financial responsibility, help to gain credit, and provide you easy ways to pay for expenses.

Those who issue the card may utilize different ways to make the student go for their card that includes lower or zero interest rate for a certain period after acquiring the card. Low or zero might be that attractive, but getting cards that offer the best interest rate during the starting period may give you substantial savings in the long run.

Sometimes there are opportunities to get a card at a kiosk at school or during special events offered by certain companies that are new to you however there might be surprises ahead after dealing with them. Much better if you apply for a card in a bank where you hold an account with. The bank has already the details regarding your financial responsibility.

Though high limit provision can be indulging to spend money, having credit availability is necessary. Several rental car agencies and hotels will only consider larger sum on your credit card where $500 is at least the minimum in most instances. However, if the card limit is too high, it might lure you to spend impulsively and put you at risk of having difficulty of paying back.

Because of its convenience, you may use your card regularly. In this case, a card that has reward programs can provide you benefits by garnering points from your purchases or it might be a plane ticket purchase to visit home.

You may have at least five credit cards like the usual college students do. Owning this many cards can put you at risk for a bad credit report and can lure you to spend money that you do not have. Do not resort to this kind of practice to avoid being buried in debt later on.

There are cards that impose annual fees which you are required to pay every year. If you do not have any credit you should be able to qualify with another card without this useless cost.

There are several cards that provide plus programs intended for college students. Rewards are given for prompt payers or for students having good grades. You can take advantage of these offers which may give you more points on your purchases with less usage of the card.

Even though it is noted that wrong usage of credit card can imprint lasting wrong impression on your credit. Proper use of your card provides you the convenience for fast purchases, help you build your credit, and allow you to utilize services that are not offered by others. With the presence of many available choices, you should search around to make sure you are getting your card suitable for you and will give you the most benefit with ease.

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