Smart Credit Card Tips for College Students Offered in October's YOUNG MONEY Magazine

 
(ORLANDO, Fla.) September 27, 2005 - In the latest issue of YOUNG MONEY® magazine, which hits college campuses nationwide this October, UCLA Student Christina Uss explores the dangers and temptations associated with student credit cards, and offers smart and practical tips to build a strong credit history while still in school.

According to UCLA's Uss, "Nellie Mae reported that 76 percent of undergraduates in 2004 began the school year with credit cards, representing billions of dollars in annual spending power." And with the on-campus credit card application tables a common sight in every student union and bookstore, college students have tons of credit card options to choose from.

Why are companies willing to offer credit to students, a population with little to no income or credit history? As Uss explains, "First, most students tend to stay loyal to the card they get in college, continuing to use it for years after graduating. Second, students are surprisingly good customers. A study published in the Journal of Student Financial Aid in November 2004 found that 9 out of 10 college students pay their accounts on time. They also tend to carry balances, translating into lucrative finance charges for the credit card company."

Uss warns students to think before they swipe. "Cardholders with little income, including college students, will be charged a higher interest rate to compensate for the higher risk of repayment. CardRatings.com, which provides objective ratings of credit cards for consumers, finds a low credit line and an interest rate in the mid-teens is reasonable for students."

Within the student card market, you'll find a variety of options, including reward cards that give users points to redeem for cash or goodies. However, for first-time card users, the reward component may be one more complication that entices them to spend without thinking. In order to learn the basics of charging and paying off monthly balances, stick with a plain-Jane card with the lowest interest rate you can get.

For more information, or to read this article in its entirety, visit YOUNG MONEY magazine online at www.youngmoney.com.

Also featured in the September/October issue of YOUNG MONEY:

• Schools That Rock: YOUNG MONEY contributing author Helen Lin, of Boston University, knows that for some college-bound students, choosing a school with the right music scene is a priority. In this issue, Lin reviews Schools That Rock: The Rolling Stone College Guide, which features the top 10 college music scenes around the country. From Athens, GA, to Seattle, WA, the book features a synopsis of each music town, with examples of what makes each so great. "Each of the ten cities is suitable for music obsessive people who can't imagine life without rock & roll," notes author of the new guide, Jenny Eliscu, a contributing editor at Rolling Stone.

• The Collegiate Poker Tour: Easy Money or a Bad Gamble? This fall marks the beginning of a National Collegiate Poker Tour, dreamed up by two college entrepreneurs and childhood friends, Craig Rabin and Jason Beck. The traveling poker tour, which will kick off at Illinois State University in November, allows students to compete in Texas Hold 'Em games (no illegal gambling allowed!) for a shot at $85,000 in scholarship money. Although some groups have expressed concern about gambling and addiction, the young entrepreneurs see their National Collegiate Poker Tour as a way to grow involvement in Intramural programs, and allow students to win scholarship money in the process.

YOUNG MONEY's articles are written by college students for college students. The magazine's content addresses the financial concerns specific to this age group. YOUNG MONEY covers a variety of money related matters including: saving/investing, credit cards, career choices and entrepreneurship. YOUNG MONEY is published by InCharge® Education Foundation, a non-profit financial education organization.

Headquartered in Orlando, Florida, InCharge® Institute of America, Inc. is a national nonprofit organization with affiliates specializing in personal finance education and credit counseling. InCharge® Education Foundation, Inc. publishes YOUNG MONEY® magazine and Military Money® magazine and offers basic financial management education to clients and the general public. InCharge® Debt Solutions provides professional credit counseling and financial education services to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA).