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How should college students handle their first credit card?
A WalletHub study found 85% of college students have cards, and experts say low limits and on-time payments can help avoid costly debt.
- Nearly 85% of college students carry credit cards, with campuses serving as fertile ground for lenders targeting new borrowers unfamiliar with debt management.
- A WalletHub study found 20% of students carry balances over $5,000 with an average of $2,100, while the Consumer Financial Protection Bureau reported colleges can "steer students into more expensive products" through exclusive financial agreements.
- Financial planner Corinna Rose of Benicia, Calif., accumulated over $20,000 in debt early in her career and now advises students: "If you don't already have the cash in your checking account, don't swipe."
- Federal law, specifically the 2009 CARD Act, limits aggressive credit card marketing to students and prohibits issuing cards to those under 21 without a co-signer.
- Financial planner Gregory Guenther of Matawan recommends adding teens as authorized users on family cards early to build credit. Aiming for a FICO score of 670 is considered good, with steady payments mattering more than large purchases.
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11 Articles
Coverage Details
Total News Sources11
Leaning Left2Leaning Right0Center9Last UpdatedBias Distribution82% Center
Bias Distribution
- 82% of the sources are Center
82% Center
L 18%
C 82%
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