Credit Cards on Campus

College students offer credit card companies a new opportunity to build their cardholder base each year.  With the competition among corporations to enroll as many students as possible, companies frequently offer attractive promotional items and teaser rates.  Some students overlook the fine print of the credit agreement in favor of the free food and gifts they receive for applying. 

            Being uninformed about credit cards frequently gets students in trouble.  Many of these students do not have the financial means to pay down or pay off the debt they accumulate, jeopardizing their credit records.  Some common mistakes students make include charging up a balance then only making minimum payments, or letting payments slip through the cracks all together when money is tight.  However, the US Public Interest Research Group conducted a study that found that fewer students applied for credit cards at campus promotional tables if their parents were active in the process--either co-signing or helping pay the bill. 

            Still, parents were the source of 26% of undergraduates’ first credit cards.  One credit card option that students and parents should consider is the card offered by their local credit union.  Credit unions usually offer lower interest rates, as well as programs specifically targeted for young adults and college students.  They also offer secured cards, which have a lower limit and are secured by money in a deposit account.  That way, a student cannot spend above his/her means. Some more advice for students who have or are considering getting a credit card:

• Only keep one card and pay it on time.  This will be enough to build your credit history.
• Pay the full balance and pay on time. 
• Keep your credit limit low to avoid the temptation of charging unnecessarily.
• Do not take cash advances.  The interest rate on cash advances is often substantially higher than the rate for purchases.

          Horizon Community Credit Union offers a Visa Student Credit Card featuring no annual fee, zero liability, credit limits based on credit qualifications, low rates, online account access, and more.  Apply for an HCCU Visa Student Credit Card today!