 |
 |
|
|
9009 West Loop South, Seventh Floor, Houston Texas
1-866-889-9347 |
CCCS of Southwest
A Division of Money Management International |
|
Regional Headquarters - 722 East Osborn Rd., # B200, Phoenix Arizona |
|
|
|
|
|
|
 |
|
Credit Cards and College Students: CCCS Offers Tips For Using Credit Wisely |
|
 |
|
| |
|
 College students are the largest identifiable segment of first-time customers for credit card issuers. Competition for the college market is fierce and is only expected to intensify. Why would the credit card industry be interested in a group with such an obvious lack of credentials?
Students have the reputation of being less risky than the general population. According to Credit World, students switch cards less often than the general public and they tend to remain loyal to the company that issued them their first card. According to Roper College Track, the main reason students say they want a credit card is to establish a positive credit history. What’s more, there is a fresh pack of prospects each year called “freshman.”
Consumer Credit Counseling Services (CCCS) believes that when used properly, credit can be a tremendous asset. “Students should take advantage of these opportunities to establish a credit history and to practice strong money management techniques,” said Chuck Stanley, vice president of CCCS. “However, when handled improperly, the resulting debt can become a terrible liability for a student.”
For example, if a student racks up a $1,000 credit card bill his freshman year, and pays the low minimum payment each month, he will finish his bachelor’s degree, complete his master’s program, finally begin earning a living and still have three and one-half years to go to pay off that spending spree. In addition, if a student ruins their credit in college, it can ruin their chances of obtaining future credit for the next seven years.
CCCS offers the following tips to help students avoid credit problems:
- Before seeking any credit, prepare a spending plan, or budget. How much of your monthly income will go toward paying credit card bills? Monthly debt payments should not exceed 20 percent of your monthly take-home pay or monthly allowance.
- Invest time when shopping for credit and know your options. Look for cards with low interest rates, little or no annual fee, and a reasonable “grace period” to allow “free time” before finance charges begin.
- Since different types of credit have different interest rates and terms, use the same amount of time and research shopping for credit as you would a new car or other major purchase.
- Consider the risks involved. What would happen if you defaulted on a loan?
Remember: Will the use of credit hurt or help you achieve your personal and financial goals? Once blemished, a good credit record is difficult to rebuild.
Founded in 1958, CCCS Southwest is one of the nation’s largest and most respected nonprofit credit counseling agencies that provides professional counseling and guidance to financially troubled consumers. To schedule an appointment consumers should call 602-246-2227 or 800-308-2227.
|
|
|
|
|
|
|
| | Home |
Privacy Statement |
About CCCS |
Contact CCCS |
Site Map | |
|
CCCS, A Division of Money Management International
Regional Headquarters - 722 East Osborn Rd., # B200, Phoenix Arizona
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
|
|
|
