Credit Cards and College Students

Topics: Credit card, Debt, Credit history Pages: 3 (1024 words) Published: November 7, 2010
College Students and Credit Cards
Lee Hannah
University of Phoenix Online
University Composition and Communication II COM/156
LaKeah Wilkins / Instructor
October 3, 2010

College Students and Credit Cards
Many students obtain a credit card while attending college. Credit card companies go to the campus to target college students. Most students apply and receive at least two credit cards while enrolled in school. Credit card companies see college students as good customers who will use the card in a responsible way (D’Agostino, 2001). College students find themselves in credit card debt because they do not know to use credit cards properly, the high interest rates and not making their payments on time. About 76 percent of college students say they have been targeted by credit card companies through tables they have set up on campus. Many college students have said they been offered a gift to sign up (Chu, 2008). Many parents of college students want their child to obtain a credit card to learn financial responsibility. College students hold an average of $2,200 in credit debt (Lazarony, 1998). Many students believe that they can spend what they want to and pay it back when they obtain a job. College students have become a target for banks because students have few financial ties. Banks compete against each other to provide students with credit cards in hope that the student will use the bank later in life for a car loan or mortgage loan. Many students find themselves in high debt because of credit cards they obtain in college because they do not know how to properly use them. Students think of their credit card as money to buy whatever they want. Students should use their credit cards for school-related purposes such as books, room and board, and food or for emergencies or a ticket to go home. Instead, many students use the cards to shop in places like the grocery store, department stores, restaurants, and electronic stores. An interest rate is the...


References: Chu, K (2008). Credit cards go after college students. USA Today. Retrieved October 13, 2010 from http://www.usatoday.com/money/perfi/college/2008-03-30-credit-cards-college_N.htm
D’Agostino, Davi (2001). College Students and Credit Cards. United States General Accounting Office. Retrieved September 27, 2010 from http://www.gao.gov/new.items/d01773.pdf
Interest Rate. Business Dictionary. Retrieved October, 14, 2010 from http://www.businessdictionary.com/definition/interest-rate.html
Lazarony, Lucy (1998). Credit cards teaching students a costly lesson. Retrieved September 13, 2010 from http://www.bankrate.com/brm/news/cc/19980605.asp
Peterson, D. Credit Card Minimum Payment Interest Calculator. Retrieved October 27, 2010
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