Credit card companies have been courting college students for ages, and it's no wonder. College students are notoriously big spenders. They tend to over-extend themselves in order to not only pay for their tuition and books, but also for the latest clothes, party supplies, electronics, eating out, and event tickets. These are exactly the type of people that credit card companies are dying to get their hands on.
One big reason why credit card companies target college students is because they know that the students are still young enough that their parents probably help them out financially. They know that if the student cannot pay for both his tuition and his credit card bills, his parents will probably be there to help cover the difference.
Another reason why they target students is the fact that they want to get the student in, hoping that they will be a long-term customer. They offer the student a $1,000 credit limit now, and in five or ten years, when the student has graduated and has a good job, they will potentially have a customer with a $10,000 or more debt with them. Credit limit increases feel great, and the temptation to spend when you are young is great. Credit card companies know this, and they want to get people in as early as possible, while their spending habits are still much more relaxed. Once that person has a family and a mortgage, they are likely to be more responsible with their money, and won't be as likely to max out the card.
Credit cards can be a real blessing for college students, but only if the students are educated on how to manage them wisely. They can help pay for the necessities, as well as deferring the cost of certain items until money comes in from grants and scholarships, but if they are used for frivolous purchases, they can cause a lot of misery in the future.
If you are a college student and you are interested in seeking credit, make sure that any offers that are directed at you don't have hidden charges. Some lenders will offer you a very low interest rate to suck you in, and then they will raise the rate on you in several months. College students are especially vulnerable to this type of tactic, so be vigilant. Read the fine print of every credit offer you receive, and be sure you're getting the best deal. And remember, your parents have probably been through this themselves. If you need help, ask them for it. If they cannot be of help, your campus may have someone who can help you.
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