Home Opinion It’s Not Hard, Avoid Gaining a Credit Card

It’s Not Hard, Avoid Gaining a Credit Card

by Kaitlyn Mitchum

Credit cards are completely unnecessary for some college students. One of the main reasons for having a credit card is to build credit, but they are often used for many other reasons, such as spending money that a person does not have. Credit card companies prey on college students because they are fresh out of high school and most are already in debt because of college bills. Many have little to no experience with money management and credit card companies want to interest students to make as much money as possible.

I remember clearly the day I turned 18, I received a phone call on my birthday from Discover, offering me a $1,000 credit limit. I quickly declined.

According to a 2002 study by the New England education philanthropy group The Nellie Mae Organization, “83% of undergraduate students have at least one credit card; [Which is] a 24% increase since 1998.” Currently, I also have one credit card, but I only use it in case of emergencies or when I want to build credit for future reference. However, for many, credit cards cause more problems than they solve.

The Nellie Mae Organization also found that, in the year 2000, “21% of undergraduates who have cards, have high-level balances between $3,000 and $7,000; a[n] [overall] 61% increase over the 2000 population,” and that “graduating students have an average of $20,402 in combined education loan and credit card balances.” It is reasonable to assume that while some students have no choice but to use a credit card for emergency situations or to build credit, the students who use them for more frivolous types of spending are in danger of acquiring long term debt. According to the same study, “on average, 16% of total debt owed when an undergraduate leaves school is credit card debt.”

Not all students see the need or desire to own a credit card,“I don’t have a job to pay off the bill, so it’s better not to have a credit card at all,” said freshman creative writing major Brandon Barner. While some share Barner’s perspective, many young people have no steady income yet continue to have at least one credit card. The Bureau of Labor Statistics reports that, “only 54.8 percent of young people (16 to 24 years old) were employed in July of 2017.” It is rather frightening that even without a steady income a college student is likely to own at least one credit card. Think carefully when considering if a credit card is the right option for you.

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