subject: Why Credit Card Companies Choose Students [print this page] For credit card companies one of the largest groups of potential customers they chose to target each year is college students. Student credit cards offer young adults a way to cover expenses while attending school, something that is often easier said than done.
By offering nave college students, who have little to no prior experience with credit cards, a way to pay their bills and cover other expenses, credit card companies often find a number of eager new customers. However, student credit cards often cause many students who have never experienced the process of managing their finances a quick fall into debt. First timers and first users of their credit cards usually have the fear of getting into the hole and creating bigger debts.
A lot of credit card companies look out for tips to attract young college students seeking for financial help. Some offer low interest rate or 0 APR credit cards to college students with good credit. However, what some of the trickier credit card companies fail to mention to students, or include in fine print that is often overlooked, is that low rates or 0% APR is sometimes only offered for a short period of time, such as a year. When the limited time is over and the period is up, rates will increase little by little to more standard rates which is sometimes very surprising to most customers. This can cause student credit card customers to become inundated with credit card debt.
Payments suddenly increase when the time is up for the interest rates. By then, they must have total care for their expenditures. As credit card debts increase, payments of course will increase. The interest rates will even go higher if you miss to pay on the right time. Keeping on top of payments and not using the credit card to an extent to which you will have trouble making payments on time is the ideal way to stay free of credit card debt.
It is very essential for students to keep watch on their debts, to stay away from trouble, financially. Nevertheless, student themselves should somehow have the initiative on doing things for themselves and get out of trouble. For most students, it is important to do a little investigation on which company to trust to. Many individuals are searching for better companies or credit card companies that performs a good job. Students can avail to this credit cards, but they must first be aware of the consequences if they will become irresponsible and irrational individuals. One must clearly see its purpose, not merely just being like everybody else. If the students are kept well-informed, then, there will be no problem encountered for as long as they have paid their payments on time.
