The Voice - Student Newspaper - February 13, 2008

Credit cards, a necessary evil

As far as college kids and credit cards go, it's easy. If a person is responsible get one; if not, run.

For students who are responsible, credit cards can teach one how to keep track of one's spending. Students who are irresponsible, however, can be buried under an avalanche of debt. According to Nellie Mae, the average student has $2,200 in credit card debt; for graduate students it is $5,800.

It is pretty easy for any student to get a credit card. Glendale Community College (GCC) allows credit card companies to set up booths and tables offering gifts such water bottles and t-shirts in order to sign up new students as customers.

GCC student Katherine Nicely says, "I think credit cards are evil, there is a lot of fine print to go through."

There are advantages to getting a card. A person needs to establish a good credit record nowadays and the wise use of a credit card is one way to do it.

David Sandor, a vice president at Visa USA, says most college students, 54 percent, pay off their credit card balances every month.

GCC student Todd Walton says, "Credit cards can be a good thing, [but] if you are not good with it, it can come back to bite you in the end, and watch out for those interest rates."

Paying off credit cards can be a long drawn out ordeal. The longer people take to pay the cards off, the worse it gets. Not paying off the entire amount in your account each month can lead to big finance charges.

Gerri Detweiler, education adviser for Debt Counselors of America, points out that by sticking to minimum payments it would take a student more than 12 years and $1,115 in interest to pay off a $1,000 bill on a card with an 18 percent interest rate.

In order to keep credit card debt in line, establish a monthly budget. Use your credit, but use it responsibly. Avoid spending to your limit. Be on time every time. Always be prepared to make at least the minimum payment, but try to pay more or better yet, just pay it off every time.

Getting a credit card and using it responsibly is one of the best ways to establish good credit. Good credit is necessary for everything from renting an apartment to buying a house; prospective employers sometimes check credit scores. Not using your credit your card wisely can be a recipe for disaster.

Choose your purchases wisely; you don't want to be paying for that latte five years from now.