It looks as though college students have become more wary about taking out a line of credit. A recent survey done by Sallie Mae found that just 49% of students between the ages of 18 and 20 owned a credit card last year, which is a huge drop from the 76% from the year before.
The drop in consumerism may have a lot to do with new laws which keep students from getting a credit card unless they have “sufficient income” to pay their bills or a co-signer who is over the age of 21. The law was designed to protect college students who usually take out several credit cards and end up thousands of dollars in debt before they even graduate.
Those with a steady income or a parent or friend who is willing to take partial responsibility for their spending habits can easily get around the law, so it’s surprising to see such a huge drop in card holders. If the survey’s findings are correct, it seems as though nearly a third of college students had been using a credit card just the year before without any idea of how they planned to pay for it. If you have kids you will definitely want to sit them down and have a serious talk about what responsibilities come with having a credit card before you sign off on anything.
When the time is right for college students to responsibly manage credit, the best option is to apply for a credit card specifically designed for the student. An excellent choice is the Discover More Student Card.
As always, stay tuned to Credit Cards Professor for more credit card news and updates.
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