Theme: What You Need to Know Before Applying for a Credit Card
September 15, 2008Before you go and decide to apply for a credit card to purchase those new shoes, you might want to take a moment to carefully think about your purchase. Being away from home at college is a liberating time. You are surrounded by new people and have a new set of responsibilities put onto your shoulders. Applications for MasterCard, Discover and Visa credit cards are all around you. The mantra of “buy now, pay later” echoes through the halls.
Instant approval credit cards might be a godsend when you find yourself in desperate need of school supplies or in need of the basic essentials. However, far too often the ability to easily apply and get one can lead to massive financial problems. Student credit card debt is out of control. Students are inundated with bank credit cards, MasterCard or Visa credit card offers and many don’t think about the ramifications of how easy it is to abuse their use.
No one doubts that college is expensive. Tuition, room, board and associated fees can wipe out savings very quickly. You, as a student, may have such an immense class schedule that makes working part time impossible. This is especially difficult if you’re involved in school activities, such as sports or academic organizations. Most parents can’t afford to pay for all the extra expenses a student incurs, not to mention if there are off campus expenses and luxuries wanted.
No one is telling you not to apply for a credit card. You should always have a back up in case of an emergency, but far too often this back up becomes easy to use for everyday purchases. Before long the credit card is maxed out and you are facing monthly bills that you may not be able to pay. If you start missing payments, you can find yourself sinking farther under and facing more fees.
Apply for a credit card and use it when you absolutely must. Do not continuously apply for those college student credit cards just because you can save 10% off your buy. Eventually, you’ll have to pay back the balance and you might not have the funds available should a real emergency happen. Try to remember that going out with your friends for a night on the town does not qualify as an emergency!