Comments on: College Students: Get a Credit Card RIGHT NOW

By: Apple

Apple — Mon, 05 Sep 2011 16:19:41 +0000

Yes, It is very hard to get your first credit card. You must build more credibility to be approved by the provider. I only got my first credit card with the help of my friend,who works in a bank. Now I maintain 4 credit cards.

By: sofia carter

sofia carter — Wed, 04 Aug 2010 07:07:36 +0000

I get my credit card when I graduated on college. And this is the best part of it coz I don’t have a credit history.

By: Frank Vincent Ippolito

Frank Vincent Ippolito — Thu, 24 Dec 2009 08:03:01 +0000

its so easy to get credit cards, a cave man can do it! So why don’t you? Stay on top of your finances by focusing your expenditures and putting them all on one spending tool. instead of cash here, credit there, debit this, check that. Stop fooling yourself! save money and save LOTS of time by depositing your money for a rainy day and using a credit card to consolidate all buying tools

credit cards are so easy to get that it is foolish NOT to have one. it’s easy to get credit cards even if you have bad credit. sure, it may be a secured credit card, but you will still be able to focus all of your finances into 1 spending tool. which means ease of mind.

This Holiday season, don’t try to kid yourself, and just keep everything all in one place, on that simple credit card, heck, even get your picture or your dogs picture on it if that makes you trust it more!

By: Christine

Christine — Tue, 06 Oct 2009 03:38:54 +0000

I think that teaching a student how to use a credit card responsibly is one of the best things a parent can do. There are certain things that can only be paid for with a credit card (at least easily). College students shouldn’t really need to buy that much anyways. Just buy what you need and what you would be able to pay today (or maybe within a week). I have two jobs while I’m a full time student and end up working between 20 and 30 hours a week in order to pay all my bills in full.

By: Alan

Alan — Mon, 05 Oct 2009 21:09:24 +0000

I agree that its critical to get a credit card while in college. I rented several apartments were credit checks were performed and if you had no credit history you were out of luck. Imagine if you’re 18 now and don’t have a credit card…you could basically graduate college and not have enough credit history to get an apartment after you move to take a job!

It comes down to personal responsibility. If you weren’t able to use a card responsibly, no need to try to scare others in to not getting one. I had several credit cards throughout college, and I paid them in full each month…a practice I continue now.

Plus, if we’re all so worried about the debt that students carry, why don’t we give everyone free tuition so they don’t have to worry about student loans?

By: Stephanie

Stephanie — Mon, 05 Oct 2009 20:54:53 +0000

Lisa, thank you for your thoughts. I would like to point out that I am not necessarily encouraging college students to go into debt. You can use a credit card without "going into debt," by paying it off monthly and not carrying a balance. One study indicates that 30% of US households use credit cards in this way. So I still do not believe that millionaires would tell you to avoid credit entirely... but they would probably agree with me that you should not carry a balance. However, if you don't use a credit card or charge card (which is like a credit card, except you CAN'T carry a balance) to build your credit score, you might just have to get a real loan and pay actually interest to do it. That's why I advocate for credit cards - they're one of the few credit-building resources we can get that you can actually use for free. But again, you have to do it right, and you have to be aware of the fine print. It is not just about renters insurance - that was one example out of the bigger picture. If was going to pick "one" thing it's about, I would go with mortgages. Having a solid credit history and a good score can save thousands and thousands of dollars in interest for homeowners who take out mortgages. But you have to start establishing credit early, and you have to do it right. But even mortgages are just a slice of the big picture, because credit scores and histories affect so much in modern American society. Is that fair? No, probably not, but I don't give advice out for how to live in a fair world - I have to assume my readers live in the real world. As far as the "when using a credit card instead of cash you spend on average 18% more" statistic goes, again, that is something I have discussed previously on this site: Do We Spend More When We Swipe Plastic? (Actually, it's the most viewed article of all time on my website.) In it, I touch on a growing trend I have seen: younger people seem to spend more with cash. Whether or not you believe me on that is your decision - it's purely anecdotal. But I find it's true for myself. I watch my spending very carefully with either a credit or a debit card, but cash always feels like "fun money" that can be spent on candy and shoes. I understand that people have strong feelings when it comes to credit cards and debt. And truthfully, not everyone can handle a credit card - just like not everyone can handle a hammer without hurting themselves. But I give my peers the benefit of the doubt - let them try their hand at responsible credit card use with a low-limit card. If they abuse it, they'll have to cut it up and learn from the experience, or deal with the consequences. If they handle it well, a bright credit score is in their future. That's everyone's individual choice and responsibility.

By: Lisa Epsteen

Lisa Epsteen — Mon, 05 Oct 2009 19:53:38 +0000

First time commenting here so not exactly sure how to do it, but I wanted to respond to Stephanie and say that actually 75% of the people on the Forbes 400 list (400 richest people in America) said the best way to build wealth is to become and stay debt-free.

It does not make any sense at all to me, to encourage college students, most with no or very limited income, to go into debt to eventually save a few dollars on renter’s insurance. How much more money could they have in their pocket if they are not making payments on credit cards and saving and investing that extra money instead? Certainly it would be enough to cover the difference in the renter’s insurance.

I do not think there is such a thing as responsible credit card use. You can get by in the world without them. Studies show that when using a credit card instead of cash you spend on average 18% more and it is the rare person who pays them off each month-and even if you do you are spending money on things you don’t need and that are not in your budget. Live on a budget, use cash, spend less, live below your means and maybe someday you’ll end up on the Forbes 400 list.

By: Matt @ godaddy coupons

Matt @ godaddy coupons — Mon, 05 Oct 2009 05:45:23 +0000

Advocating the use of credit cards for college kids is a two-sided proposition to be honest. On one side, it is good to expose youth to the credit world and teach them how to manage their own expenses, but on the other side it is also risky because a credit card is a huge responsibility even for an 18-20 year old. I however, think the risk is worth it

By: Stephanie

Stephanie — Mon, 05 Oct 2009 05:06:19 +0000

Chuck, that’s all well and good, but I wonder what your advice to a college student would be. Things like “work hard,” “save,” and “be an entrepreneur” are givens that I’ve mentioned elsewhere on this site. But I disagree with your assessment that millionaires reject credit, and I don’t think there are many millionaires that would tell someone just starting out to ignore their credit score.

So what would you say to a college student? Actually, what do you say to college students, since that’s who you’re talking to by commenting here.

By: Chuck

Chuck — Mon, 05 Oct 2009 02:02:01 +0000

Stephanie,
The problem is that people “use” credit cards to build a “Credit Score” which is not a measure of financial success, it is only a measure of how one uses debt.
Debt is a product, a highly marketed product in our society. If not having a credit score due to being responsible and paying cash is what keeps one from getting a job, then our society is more twisted that any of us are ready to admit.
I have chosen not to play their game. Funny that most millionaires agree with me. While I’m not there yet, if you do what rich people do you will become rich and if you do what poor people do you will stay or become poor.

An old Jewish proverb says “The rich rule over the poor and the borrower is slave to the lender.” Welcome to 21st century slavery aka debt.

For those who are looking for help in breaking free from this slavery you can contact me at chuckmohn.com.