Wednesday, October 6, 2010

Credit cards are the devil

As a first generation or low income college student, you are sure to see credit card companies with their sexy offers of a free t-shirt, gift certificate, paintball pass, or whatever on and around campus. But don't give in, it's a trap!

Photo credit: http://coyoteprime-runningcauseicantfly.blogspot.com
You might think those sexy freebies make a compelling case for why you should take a few minutes out of your day and fill out an application. You might think you can get the freebie, but you'll never get a credit card. However, a lot of first generation and low income college students do not consider the long-term consequences of getting that credit card.

Credit cards let you buy now and pay later, with interest. If you are responsible and make a plan for how you are going to pay off purchases, they can be a good thing. But let's be honest, most of us are not this responsible. Most of us will buy that new $200 outfit and pay the $20 minimum payment at 18% interest. In the long-run, that $200 outfit will cost you more than $600, not counting all the other purchases charged on that same credit card or others.

Bottom line, when it comes to credit cards, proceed with extreme caution. And empower yourself with information, so check out Choosing A Credit Card: The Deal is in the Disclosures from the Federal Trade Commission before you sign on the dotted line.

Got questions? Please feel free to ask The Advisor about it.
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5 comments:

  1. AnonymousJuly 14, 2011 at 9:50 AM

    They now put text and visual warnings on cigarette packs about the dangers of smoking. They should do they same with credit cards. Put a little picture of a house and a car and a family with a big X over it all.

    ReplyDelete
  2. albina N muroJune 26, 2014 at 6:39 AM

    According to a new report on debit and ReliaCard Login spending abroad, spending on debit cards is worse than spending on credit cards.

    ReplyDelete
  3. Anna SchaferSeptember 17, 2014 at 4:35 AM

    However, a lot of first generation and low income college students do not consider the long-term consequences of getting that credit card.Shell Credit Card

    ReplyDelete
  4. albina N muroSeptember 21, 2014 at 6:21 AM

    Credit cards are alright for as long as you properly manage your finances. It becomes dangerous, just like any other thing, when used carelessly. Slate Credit Card

    ReplyDelete
  5. Abdul bariFebruary 1, 2015 at 4:18 AM

    high risk merchant payment processing , a lot of first generation and low income college students do not consider the long-term consequences of getting that credit card.

    ReplyDelete

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