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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Use a credit card only to establish credit. Never use more than you have even if you think you may have it by bill time.
many people must read this article. we get many problems with our credit cards, and this is because we lose the control with those plastic things.
Thanks! Great article!
I think providing students with credit card options is great, but they need to be informed on how to care for their finances so they don’t go into debt.
We as young adults need to always be careful with dealing with our credit that is something that we have to deal with for the rest of our life.
Yeah. I had a student credit card. It’s a great way to build credit, but make sure you have money to put back on the card.
CREDITCArds are not always easy to use now a days for college
very good information
Wow very interesting
Wow very interesting!!
this is great! I actually thought that there weren’t any student credit cards left actually. I’m sooooo happy right now>.<
they should definately try to find a resolution for the rate of growth in defaults.
they should try to resolve the default rate problem
The new policy is essential to staying in business.
awesome
only use hyour credit card to establish your credit. Use your debit to handle bills so that bill collectors money is recieved on time
Great article.
Use wisely to establish credit, try to pay off the bill at the end of each month. Information makes you think long and hard on which credit cards to apply for.
Excellent article!
Hmm. I have been turned down by every single credit card I have ever applied for – even a gottshalks card! I have tried all of the cards you suggested in the past(with proper time inbetween, of course). How am I ever going to build credit?
you did great for me and my friends.
Great info
this is a good article. you should use your credit card to establish your credit but pay as much of the bill as you can right away. and only spend what you have.
It will get better after the mess is over
i agree