Why don’t they just put warning messages on credit cards for students? Something like “Excessive spending can get you in trouble” would help. Or wouldn't it?
7 Worst Mistakes Students Make When Using Credit Cards
Credit card dealers hunt for student customers and give out credit cards on campus (as well as outside the campus) left and right.
The offer to spend now and pay later is almost irresistible. Most students readily get caught and dive head first into debt, lacking the necessary financial knowledge to save themselves from some trouble.
Here are the 7 worst mistakes made by students having credit cards in college:
- Having too many credit cards. The more credit cards you have, the bigger your chances to use or even lose them. Sometimes bank workers can get so annoying that you are ready to sign wherever they say only to get rid of them. In this way, however, you can end up with a collection of cards more appropriate for poker than for taking care of your finances.
Strike your hand that is reaching out to sign and use instead your ice-cold “thank you, but no” tone.
- Not reading the fine print. The smaller the print, the more important the information it conveys. Try not to be fooled by the bank's dirty tricks - free T-shirts or frisbees, suggested to every ‘happy’ card holder.
- Not comparing different cards. Credit cards for students may look all the same, but they are different. Do your homework by comparing different options. Common, you can save some money by doing so. Isn’t it motivating?
- Forgetting to pay the bill. Putting off credit card payments is not the same as procrastinating when studying for your midterms. When you have to pay $30 or more as fine for a late payment, it can really hurt even more than poor marks.
- Giving it to a friend can be a sure-fire way to lose the friend. For some reasons, it is even harder to remember the due dates for somebody else’s credit card than for your own. I don’t mean you shouldn’t help your friends. Just be reasonable or even hint that you know a nice place with amazing cards and free T-shirts.
- Using a credit card when you are not sober
It’s almost like drunk driving. You can easily lose control over the situation. For example, in a burst of unexpected generosity, you can yell all of a sudden: “Champagne for everyone in the bar – I pay”. If you do that, your morning headache will get even worse when you search your pockets for money to buy lunch and you recollect that impulse.
- Buying something you do not need and cannot afford. The best way to use credit cards in college is to pay for emergencies, such as health care bills or the tickets to go home. Diamond rings and world cruises aren’t included in the list of emergency cases.
Hidden and Obvious Dangers of Using Credit Cards in College
- lifetime debt slavery;
- ruined credit history;
- stress caused by frequent calls from creditors.
Even though credit cards are one of the top dangers on campus, they are incredibly popular.
How many credit cards do you own?