Most college students know what it’s like to live for the whole year off the money they made working over the previous summer. Existing on Ramen noodles and peanut butter, they do what they can to make that money last. But what happens when they are tempted by those dangerous credit card offers that are made readily available by the campus cafeteria or outside the football stadium? I remember how easy it was to apply for one after being lured in by the free T-shirts and water bottles.

“Too many college students go off to school without understanding finances,” said Shalonda Jones, a representative of the National Foundation for Credit Counseling. “Parents make the mistake of not introducing financial literacy to children at a young age, and most parents are equally clueless as to what it takes to remain financially stable,” she said. “We all know when you’re away from home with a little freedom and money, students tend to take that freedom and lose their heads.” Read the rest of this entry »

The average student graduates college with over $4,000 in credit card debt.

It is so incredibly easy to apply for a credit card. Companies set up booths during move-in-days at college dorms, send out applications in the mail, and bombard email inboxes with credit card offers. Many credit card companies offer incentives, like a free T-shirt or a free pizza, to those who apply and are approved for a card. This all sounds like a good deal for students; sign up for a Visa and dinner is free! However, a few months later, you open your credit statement and find you owe way more than you are able to pay back. Then, your interest rate goes up and your credit score goes down.

Why is your credit score important? If you have a low credit score, you might not be able to buy a car, rent an apartment, or even get a job. Read the rest of this entry »