CREDIT CARD COMPANIES CONTINUE THEIR STUDENT PUSH

May 24, 2006

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For credit card companies, it is becoming even more crucial and profitable to lure college or even high school students, in some cases, to accept one of their cards, according to a commentary on ConsumerAffairs.com. A 2005 report done by student lender Nellie Mae found that:

• 76 percent of undergraduates had a credit card;
• Only 21 percent of college students with credit cards paid them off each month;
• The average balance on student credit cards was $2,169; and
• 25 percent of students owed $3000 or more.

Starting life after graduation with a few thousand in credit card debt (and possibly many more thousands in student loan debt) affects all parts of a young person’s lifestyle, from jobs to housing. Credit companies cannot shoulder all the blame, as it takes planning, restraint and the ability to see credit card use as part of young person’s personal financial plan. The Jump Start Coalition, a nonprofit organization that tests high school seniors on financial issues every two years, recommends that before getting a credit card, teens should have their own checking account and know how to write checks, keep the register up to date and balance the books each month.

CREDIT CARD COMPANIES CONTINUE THEIR STUDENT PUSH