College students reportedly are more likely to be late with payments and incur additional fees. ![]() The average American household has credit card debt of $5,000 to $8,000 (reports vary). If you are young, responsible use of a credit card is a good way to start building a credit rating-but only if you use the credit card responsibly and always make sufficient payments on time.Įven though federal regulations require banks to disclose all fees and make it more difficult to increase fees or rates without warning credit card holders in advance, many people overuse credit cards and pay high interest rates and fees for making late payments.(Most ATM debit cards also function like a credit card for online purchases.) Often it’s less expensive to make significant purchases online, and to do that you usually need a credit card.You generally need a credit card for travel, for hotels, and other needs.In an emergency, you may need funds you cannot obtain otherwise.The new regulations set limits to prevent such serious problems for students under age twenty-one, but older students may still experience problems from overuse.Ĭredit cards do have legitimate purposes: Until new regulations in 20, many college students got deeply in debt and experienced financial disaster. Understand the importance of a good credit history and how to obtain and review your credit report.Ĭredit cards are such a big issue because they are easy to get, easy to use-and for many people, addictive.Describe steps to take to avoid overusing a credit card.Set personal limits for your credit card use to minimize your debt. ![]()
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