College Students and

Credit Cards

Why do students get credit cards?

Typically credit cards are started as an emergency fund given by your parents

What financial and emotional behaviors contribute to credit card usage?

Being away from home is stressful on incoming students, students usually don’t get

 as much money from their parents and its hard to find a job.

Credit cards seem to be an easy way to keep the same lifestyle they had inHigh School.

 Is this Normal???

YES, the majority of students turns to credit cards for their spending habits and

often misuses them

                    Helpful Hints!

 While Applying:

    * Search for the best interest rate

         (somewhere around 14%)

    * Pay attention to the consequences of  late payments

     * Choose one without an annual fee

    * Keep your credit limit low      * Always read the fine print

Once Approved:

   * Don’t miss monthly payments

   * Pay more than minimum balance, if possible

   * Don’t charge more than what you can pay off in the short run

     Credit Cards are a useful tool if used correctly!

Barrett,Lois.(2006). Good Credit 101,Black Enterprise,37,58.

 What is Really an Emergency??                          

--------------------- Emergencies:

It’s Not FREE $$$$!!!

          * Car Troubles       * Medical

          * School Supplies and Books       

 Non-Emergencies:

         * Shopping            * Bar Tabs

         * Vacations         * Fast Food/Restaurants

         * Pampering (nails, hair, tanning etc.)