Being the Target: The College Credit Card Trap

Chances are, most of you reading this have been aggressively pursued on campus to sign up for credit card. It is a well known fact that credit card companies use college campuses to attract new customers. As college students, many of us are a bit strapped for cash, and signing up for a credit card seems an all too easy way to offset this setback. However, it is extremely important to understand the risks of signing up for a credit card on campus.

First, know that the methods many of these companies use to attract new customers are anything but ethical. An example of this would be a credit card company luring students to attend a seminar promising food, clothing, gifts, etc. and requiring the attending students to sign up for a credit card before receiving any of the “goodies”. Some students may decide to sign up for the card on the spot, and later on they may find themselves in serious debt.

The credit card companies may promise zero interest rates and zero payments for a length of time; however, they also reserve the right to change these rates at any time. In this situation, students can find themselves with huge amounts of debt reaching into the tens of thousands of dollars. If this were to happen to you, it would be extremely hard down the line to receive home loans, auto loans, or other credit cards. Some debt on a credit card can be good, but you’re spending needs to be properly managed and paid off in a timely fashion. Something that most college students have trouble doing. This is what credit card companies hope for. In essence, signing up for a credit card on campus can affect your life for years after graduation.

Many colleges and universities have now put strict regulations on how they allow credit card companies to operate on campus. However, they still manage to attract new customers with the lure of easy money, free stuff, and the promise of rates that seem to good to be true. As with everything, if it seems too good to be true, it probably is. This is certainly the case with credit card companies operating on campuses.

http://money.cnn.com/magazines/moneymag/money101/lesson9/

http://www.msnbc.msn.com/id/14031324/

http://www.nytimes.com/2008/10/18/opinion/18sat2.html

Posted by: Andrew Moran