Enlightening Students About Credit

By: AjeetKhurana
Credit card companies seem to be growing by leaps and bounds. They are appealing to all kinds of people as well. If you thought that credit cards were not available to those who did not work, think again. Credit card companies are starting young these days.
What market are they targeting? High school and college students, of course. As it turns out, if you are a student, you can avail of a credit card. In fact, that is the only time when one can access a credit card despite being jobless.
And college students love the fact that they have the option of spending freely.Now that we have established that credit card companies have felt the need to connect with increasingly younger people, one question arises: How do they sell their products to this group?
Well, student credit cards are marketed differently from other kinds of credit cards. In these cases, the credit cards come with a bunch of teasers that make it easy for the students to afford the card. Thus, there may be interest-free periods. There may be interest rates that are unbelievably low. After all, students do not have a terribly stable income. To land them with an unnecessarily expensive credit card offer would mean the failure of that offer.
However, this is not to say that student credit cards have no negatives at all. Of course they do. For instance, defaulting on credit card payments could result in the suspension of all the bonuses that were being given.
Default just once and that unbelievably low interest rate might escalate to nearly thirty percent. Moreover, students are not necessarily known to be all that great at taking care of their cash. In fact, when we think about groups that tend to waste their money, the image of students is one of the first ones that come to mind. Moreover, living away from home can result in higher expenses which the student might find difficulties in paying for them.
Sometimes there is no way of avoiding growing credit card debt. However, if you are a student with a newly-acquired credit card, promise yourself that no matter what, you will not spend more than is necessary. Using your credit card prudently is the best way to ensure that you do not get caught in the web of credit card debt. Remember that once you do graduate from college and get a full-time job, you will have many other bills that have to be paid for. At such times you would not want to be landed with the extra baggage of credit card debt.
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