Credit card firms wooing you? Be very careful!
If you are a college student then you’ve probably been wooed by credit card companies with just about everything from free T-shirts to beach towels. Have you ever wondered why they love you so much? These companies can go to any extent to get you over to their side and use their cards. One of the biggest reasons is because you like to spend and don’t give a thought to tomorrow. That’s something that can wait until you get out of college… right? Well, the credit card companies bank on exactly this sentiment when they woo you. You are potentially lifelong customers who will spend, spend, and spend.
Some statistics to make you go cold in the feet — according to a study conducted by student lender Nellie Mae, the average college freshman carries over $1,500 worth of credit card debt. And by graduation, this amount more than doubles. And the worst part, even before you begin your professional life, your credit score is in ruins. So you spend the better part of your youth trying to repair the damage so you can buy yourself a home, a car… the list is endless. Not a fun scene to imagine.
Agreed you need them. I mean today we cannot do without credit cards, so the smart option available to you is to find the credit card that is best suited to your needs. You will get thousands of offers from issuing banks. Don’t get snowed under or tempted by the gifts. Be smart. Don’t go in for a credit card just because it announces zero percent interest for the first six months. It may sound like a good deal, but what students should keep an eye on when shopping for a new credit card is the annual percentage rate. These rates can reach as high as 18 percent! Next time, I will discuss more tips on how to choose your credit card.
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