Charge Now, Pay Later
Students headed off to college need to beware of the tables on campus boasting free T-shirts, watches and other goodies just for signing up for a credit card. Today's free T-shirt could be tomorrow's financial burden, says UAB economics professor Bradley Wilson, Ph.D. "One can afford to carelessly use a credit card only if he or she has the ability to pay it off in the near future, which for students, usually on tight budgets, is not likely." If a college student truly needs a credit card, Wilson says to apply for only one and pay off the balance every month. "That will work to strengthen one's credit rating. Borrowing really becomes important when getting a good rate on an automobile and a good mortgage rate on a home, and of course such good rates depend on one's credit history, and that begins with credit card usage in college."
Contact Jennifer Park, Media Relations, 205-934-3888 or [email protected].
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