Is it right for students to use credit cards?

I think as long as its used in moderation and they have the means to pay it off its fine to get one. You have to start establishing credit at some point, it’ll eventually help them get an apartment or other thing that require credit. Its not for everybody though, just those who can be responsible with their spending habits. Because what people fail to realize is it’s not their money, they do have to pay it back sooner or later.

There are lots of “experts” who tell you to cut up your credit cards.

I’ve always been of the opinion that it is better to learn to use credit responsibly than to avoid usinging it all together.

Students who get creidt cards then pay them off every month (or at least don’t carry a balance all the time) are living within their means just as someone who doesn’t use credit.

Moderation is the key :)

10 Facts Students Need to Know:

1 Debt problems can lead to depression, which affects study habits, academic performance and retention rates.

2 Unfortunately, in a few extreme cases, the stress associated with credit card debt has been a factor in student suicides.

3 People stressed about debt (particularly credit card debt) are more prone to heart attacks, insomnia and explosive emotions.

4 Some studies suggest that those students with credit card balances in excess of $1000 drink more, smoke more, use more prescriptions for depression and have lower grade point averages than those who don’t carry credit card debt.

5 Debt can stick with students long after graduation. Debt ridden students interested in advanced degrees may not be able to secure graduate loans. Potential landlords, and some employers, routinely review credit histories.

6 Colleges and universities are the one group that makes money out of the credit card industry without bearing any responsibility for educating the students about the possible pitfalls and the devastating effect bad credit can have on their financial future. In return for lucrative fees, many colleges allow the banks and credit card companies to hawk their cards right on campus.

7 Many young adults have been forced by long-term financial problems to file for bankruptcy. In the years 1991-1999, there was a 50% increase in bankruptcy filings for people under 25.

8 Filing bankruptcy can severely damage your credit ratings for years. A bad credit rating may result in an inability to obtain a mortgage, a car loan or any other extension of credit.

9 Companies offer student “teaser” interest rates of 5 to 7 percent and quickly increase them sometimes as high as 20% or even more for those who miss payments or receive cash advances.

10 Missing payments, or making late payments, can result in increased interest rates, late fees of up to $29 each billing cycle and most importantly reporting to a credit agency who will in turn include it on your credit report, which will be seen by all future prospective lenders.

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