The usual credit card debt college students find themselves in usually comes in around $3,280. Raising one’s credit score is great for those wanting to lower interest rates, but if not done right, it’ll only lead to worse times.
Understanding credit card debt – for those leaving high school – is not a topic that has been brought up in schools outside of a Consumer Ed class. Many students do not use their credit cards correctly, or incorrectly meaning they use the credit card without thinking risking a decrease in credit scores and pushing a couple of thousand dollars in interest onto their name.
Credit scores are they are a way of telling the bank how likely someone is to repay a loan. The higher the score is, the lower the interest rates are. The lower one’s score, the harder it is for them to receive any sort of decrease in interest rates. Keeping an eye on the money one spends with a credit card is a major task: it is not to be messed with, no matter the cause.
“And a new survey by U.S. News and World Report found that one in four college students is carrying credit card debt, and more than a quarter of them have credit card debt that exceeds $2,000,” Kristine Lazar, writer for the CBS News website, said.
Some believe that credit cards are to be feared and lead to no good, as they may teach young adults to use money that they do not have or cannot pay without thinking about the price of interest. which does not seem to be the case here. Although credit cards indeed increase the risk of debt, using your card correctly would do nothing more than benefit future payments of necessity. With the right knowledge and correct use of credit cards can build a great credit history making borrowing of cash cheaper while also giving low interest rates, cash back from payments, and rewards just don’t make the rookie mistake of paying over budget it’ll only lead quite the pickle.
“In some states, employers can request your credit report as part of your job application. You will know if they do; your consent is required. Because the effects of good credit can be felt in so many parts of your life, it’s important to do what you can to help your credit. Paying your bills on time is a big part of the recipe, as is keeping credit card balances to less than 30% of your credit limits, and lower is better,” Erin El Issa, writer for the Nerdwallet, website said.
As mentioned before credit cards are an amazing way of granting huge benefits when adulthood comes knocking on the door, it is recommended for students that hit the year of 18 to not wait for the card it will be very useful growing up in a society of inflation.
For those leaving high school this year, how about grabbing a card? The benefits are great and will help when buying essential needs like a house and a car once leaving to pursue a beautiful career.
