Student Credit Cards in Trouble
Is plastic bad? I guess it depends who you ask. 
The pride of Mattel, Barbie, who turned 50 on Monday, would say “absolutely not” while flashing her perfectly plastic smile. But if you pose that same question to CEO’s of major banks in the U.S. they’d probably concede that credit cards are a double edged sword.
It’s important for banks to offer a complete portfolio of products to borrowers if they wish to be a retail bank of choice. Among those key products are CD’s, debit cards, home equity loans, and the much maligned plastic. The problem with credit cards, however, is that the number of defaults is now on the rise, which is compounding the issue for those banks trying to rebound from the sub-prime mortgage crisis.
As a result banks are doing what they can to insulate themselves from further losses; including lowering credit limits for some cardholders, closing accounts, or getting out of the business altogether.
Earlier this week Warren Buffet said the economy had “fallen off a cliff,” but unlike Thelma and Louise we will survive. The economy will come back, it always does, but it will take time. Some economists are suggesting it will take five years before the economy is strong again.
So if you notice less card offers in your mailbox or inbox these days you now know why. However, card offers for students do still exist if you know where to look. Let’s take a look at a few cards still on the market for students today.
What Can I Do?
Move quickly if you are interested in a credit card. Time is of the essence for the reasons cited above. There is no time like the present to begin building your credit. I began building credit when I was 19, and it helped me later in life when I bought a townhouse at the age of 26. The Truth About Life After College is a great read about building your credit early.
You also want to be very careful about your credit score. Protect it and coddle it like a new born baby. It’s kinda sad that your FICO score is that critical in life, but it really is. If you don’t know your score you should get a free credit report and familiarize yourself with it. How can you improve your credit score is an article that provides some helpful tips for strengthening your credit score.
Like the polar bears, credit cards for students are on the endangered list, but are still here for now. Perhaps you can grab one before the best offers are off the table. Then perhaps you’ll be wearing a smile as bright as Barbie.
ScholarshipPoints.com members can try to win free scholarships with the following code for 10 points: CARDTROUBLE.
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Dont get credit cards they are a bad idea!
as someone who has actually made this mistake as an undergrad… make sure you know what you’re getting into!
Pay off balances every month.
credit cards are EVIL!
Chris – Credit cards may be evil if handled incorrectly, but unfortunately they are a necessary evil. That’s why we created this site – to educate students on credit so that when they need to take out a credit card they can make a responsible and confident decision. It takes self-control and discipline but if you handle your credit wisely at an early age (and build credit with a student credit card by making small purchases and paying it off each month), you will thank yourself in the future.
amazing
I just got my first credit card and i can see how people could easliy let it get away from them and ruin their credit.
Check your credit score every 6 months to stay on top.
Allison you rock. If you do not go into debt you do not need a credit score.
its so easy to get carried away with spending when you have a credit card .
I could not get accepted for one if I wanted. I have no credit at all. Anyway, in this economic environment I can see how everything is getting tougher.
Credit Cards are no good…..
no money no credit card
Agreed. With this economy, people are going to be piling up debt.
very informative
Great info!
Great Information