Credit-card ‘freebies’ aren’t worth the hidden costs
Posted on August 28, 2007
Filed Under Advice, Students Credit Cards | Comments Off
As most students are aware, there is more to traveling through campus than just walking from class to class. All along the way lie various distractions in the form of postings on bulletin boards, street preachers condemning us to hell, and even the wonderful hot-dog stand outside of White Hall.
While many of these distractions are helpful, or at worst merely annoying, it is important that new students realize the potential for some of them to be genuinely harmful.
Take, for instance, the frequent presence of tiny coupons and other “freebie” offers informing students that all manner of items, from pizzas to T-shirts, can be theirs at no cost. Unfortunately, some of these offers require some “participation” on the part of anyone wishing to take advantage of said rewards. Specifically, students must often sign up for a credit card to “participate.”
The problem? Many new students have never been forced to provide for their own fiscal well-being before entering college and have no idea what kind of long-term damage they could do to their credit rating through irresponsible credit card use.
The companies providing these cards seem to have no moral qualms about fooling naive students into applying for credit cards that often carry excessive interest rates and annual fees, meaning that even a fairly responsible student could end up owing the credit card company hefty financial charges. Very few students would be capable of remaining in school with the debt they could quickly accumulate.
I’m not, to be fair, laying all of the blame on credit card companies. After all, the student signing up for a credit card still makes the decision in the end. These companies, however, still show a wanton disregard for the well-being of students in search of higher profits, and that is unacceptable.
Since UK has done little to nothing to prevent this particular type of solicitation or to educate students on the importance of fiscal responsibility (except the occasional mention of it as a concept in orientation speeches by the administration), it is up to individual students to educate themselves and to exercise restraint when dealing with financial decisions.
In general, avoiding a credit card in college is a good plan. It’s true that using a credit card with a small monthly limit for strictly food or gas can help a student build a good credit history from a young age, but the temptation of a card can often prove too much for those of us in college.
Furthermore, there are a variety of ways for college students to save money without sacrificing their quality of life. When leaving campus to go to a party or restaurant, always carpool. You’ll be amazed at how much gas you can save if you and your roommate trade off driving duties.
Secondly, realize that, although stylish, brand new polo shirts are not a weekly necessity. It’s shocking how much some students spend on clothing that they don’t need every month, and then proceed to complain about the high price of books and tuition.
While we’re on the subject of books, veteran students will tell you that purchasing your books directly from other students or online can cut the cost of books by as much as half every semester. True, buying from the University Bookstore or Kennedy Bookstore allows you to see and buy the book at the same time, but as long as you’re careful and pay attention, shopping online can dramatically reduce your textbook cost.
All these minor, yet useful, tips aside, the main necessities in surviving the fiscal demands of college are personal restraint and responsibility. Always read contracts (whether they come from a credit card company or your cell phone service provider) fully and make sure you understand them before signing. Realize that decisions you make now could affect your ability to buy a house in 10 years or prevent you from getting a car loan.
We are, for better or worse, adults – in a very real sense – once we step foot on a college campus. We are held responsible for our own well-being, and it is either our will to improve our lives or our inability to curb our own desires that will determine whether or not we are financially prepared for life after college.
In a nutshell, think before you act, save before you spend, and spring for one of those five dollar “hot and ready” pizzas instead of paying thousands of dollars in credit card debt for a “free” pizza.