h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

At many universities, students are beseiged with offers of free credit cards. Don't accept one.

These cards are fine except for the *insane* interest rates they charge if you don't pay off your balance each month. (sure, this is how all credit cards operate and make money, but 25 percent is a *bit* hefty when it's compounded monthly)

When you get out of school if a few years, you'll be faced with a lot of bills (student loans, ect) you don't need to add credit card debt to the list.

Just think of all the beer you could buy...

Cheers!

- X

On the other hand, if you manage your credit card wisely, you will be in for a lifetime of the capabilities that good credit can provide.

The reason so many credit card companies solicit university students is that they know that they can sort the wheat from the chaff early on. Put on a good show at this point, and they'll be there for you for life.

Two good tips: request a manageable credit limit, so that even if you can only manage to pay the minimum, it's not catastrophic. Second, keep your credit card frozen in a block of ice in your freezer. This way, you'll have to think about your purchase before you make it.

One good thing about using a credit or debit card is that itemized list of all the foolish things you purchased at the end of the month. If that doesn't scare you into reality the first time you receive one, you better cut up the card. Also notice whether you left any gratuities larger than the bill...

Valid points, but if you're really interested in obtaining a credit card, there are better choices than those which solicit young adults on college campuses.

Having a credit card is part of being a responsible adult, my point was (and remains) don't sign up for a credit card through a stand in the student union.

I got a credit card when I started uni because I wanted to establish a good credit rating. It's never a good idea to make a big decision like getting a credit card based on the fact that someone is soliciting on campus. If you see it and you think it's a good idea, explore all your options.

The card I got two years ago is with a bank that I now want to leave, and my new bank is trying to get me interested in their student credit card. The interest rate on overdue payments is low (but if you're doing this for a credit rating, you want to avoid overdue payments at all costs).

One factor that I'm considering is that a lot of credit cards in Canada (I don't know about in the UK or elsewhere) offer points towards merchandise. Whenever you spend money with your credit card, you earn a certain number of points (usually the equivalent of a penny per dollar, or some little amount like that). The student card from my bank will give me movie tickets and music discounts, which seems to me to just be a gimmick to suck people in, because there are a lot more useful things I could spend points on with other credit cards. The card I like the most right now will give me points that I can spend on groceries. There is another card that will let me save up points towards buying a car. Of course, this is by no means the most important factor in deciding which card I want, but with all other options equal (which they seem to be), I'm seriously considering the grocery points card.