Credit Cards: a blessing or a curse?
Credit cards can be helpful or hurtful, depending on the responsibility of college students.
Meredith Smith, a biology major from Sugarland, Texas, said she does not have a credit card, and she does not plan to get one until she is out of school. She said after sitting with her parents they agreed she did not need a credit card, they did not want her to get into financial trouble by giving into temptation and impulsiveness while buying things. She said she will eventually get a credit card when she is ready for it and has a steady income.
“After I’m done with school, and my education paid off, I’ll get a credit card,” Smith said. “First I want to start building my credit, then look into getting one when I’m ready to start buying a house.”
James E. Brink, senior vice provost for academic affairs at Tech, said some students want to live an upper-class lifestyle. He said he often talks with parents who say their children do not have to work to make ends meet, but to make payments of their brand new vehicle or to have extra spending money. He said college is very expensive, the average rate for tuition is currently, $8,700 per semester, so he can understand why a student may resort to using credit cards.
Paul Blake, director of student financial aid, said it is in student’s best interest to work more now and take out fewer loans and to also limit credit card use. He said some majors are difficult and it is understandable some students may not be able to work, but with most majors it is possible to have some type of job.
Royce Lewis, a human development family studies major from Lubbock, Texas, said he owns two credit cards and he has not had any problem with them. He said he got his first credit card five years ago, with the advice and guidance of his parents. They helped him learn how to manage and budget his money, he said. He said his monthly payments vary based on how much money he spends during the week, but he has never overdrawn his account or missed a payment.
“Having a credit card has been very beneficial to me, both long and short term,” Lewis said. “I am able to buy things now and pay for them later, while also establishing my credit.”
A few of my friends have gotten into credit card trouble, Lewis said, they do not live within their means and it eventually catches up with them. However, he said he believes, owning a credit card has taught him financial responsibility and he feels better equipped to manage his finances more successfully than others who have never had a credit card.
“Credit cards could land somebody in trouble if they are irresponsible and careless,” Lewis said. “But, if you are responsible and take care of business, you don’t have anything to worry about, it all comes down to the type of person you are.”