College students: access to credit? (pay, collector, increase, dollars)

[Amelorn]

When I was a kid/teenager and was in money management discussions, I was warned that in college, I would be tempted by offers of substantial, easy credit. I heard stories of an uncle who got himself up to his eyeballs in debt when he was in college circa 1990. He was bailed out. My grandfather still pays his bills.

My mother was traumatized by my father's experiences running up debt, and she never got a card in her life, with the exception of a Lord & Taylor store card. Being at home with 2 toddlers, a drunk & violent husband, and debt collectors calling with abuse/threats was a rather traumatic experience. Even after a divorce and a 100k income, she still never perceived any need to get one. Fine.

After some further investigation and reflection, I decided that credit is a great tool with judicious and responsible use.

I arrived in college for the fall semester of 2008. Not the greatest time to solicit credit, eh? I am in grad school now. Credit has not been easy or available, though one must bear in mind I was applying on my own and not having a parent co-sign. In 2011, I got a visa from Capital One for $500 and an amex through my bank for $1000 2 weeks ago. So be it, but it does have its limitations, especially when you are able to (as I can) pay the balance in full every week and could benefit from a larger limit (cash back on tuition is nice).


Any similar experiences?

[skinnayyy]

I still can't believe how lucky I am when I was in college. Well some would see lucky, some would say unlucky.

After high school graduation, working and going to school, I worked part time at toys r us. At most I made 10k a year. My mom told me to apply for a credit card and use it once a month then pay off the balance to build my credit so I could buy a house easily when I was older.

So I did.

I walked into my local PNC branch, filled out the form, and then a couple days later they told me to come in because they had received the results. The associate then informed me that I was approved for 15000 dollars!!!! I was like are you serious!? several months later, increased to 17k. several months later, increased to 19k, several months later, increased to 21k, hasn't gone up further than that. That was all without ever carrying a balance on it and only at most charging 100 dollars to it.

It's really come in handy having a large limit on a credit card though, and one that gives cash back. When I've bought airplane tickets (to china twice) I had a credit card I could buy them with. Any large purchases I never had to carry cash around with me, I could just pay for it. No big deal. My friends could never find a place that would give them more than 500, which really is a hindrance when you're trying to book a hotel room for a vacation.

[jghorton]

Perhaps things have changed since the 90's when our kids were in college (?) - But, during that time, they probably received 3-5 Credit Card offers per week in the mail (our address) ... in addition to a ton of unsolicited offers on campus. (Similarly, although we stopped using credit cards altogether a few years ago, I'll bet we still receive 2-3 credit card offers per week; perhaps because we've always maintained an excellent credit rating).

Our son 'took advantage' of the readily available credit in college and built-up a pretty healthy bill by the time he graduated. He then used his graduate school loans to pay-off his credit card bills ... and later, after he got his masters, he was earning enough to pay off his school loans.

[Justin Time]

Originally Posted by Amelorn

. . . credit is a great tool with judicious and responsible use.
. . . especially when you are able to (as I can) pay the balance in full every week and . . . (cash back on tuition is nice). . . .

What is left of your edited post sums up my thoughts pretty well. ". . . credit is a great tool with judicious and responsible use. . . . especially when you are able to (as I can) pay the balance in full every week and . . . (cash back on tuition is nice). . . ."

When I went to college, I accepted my first credit card and I ONLY used it for school-related expenses. It was an excellent starting point for earning my own credit score. To this day, I have an AWESOME credit score. I use cards for perks and pay them in full each month.

However, there are people (college students and not) who are NOT financially responsible and should NEVER have access to credit cards. Most of us know at least one of those people.