The dangerous of inappropriate credit card using for college students - Essay Example

Task: The dangerous of inappropriate credit card using for college Credit cards are easy ways of selling or purchasing things without using money. Each card has a unique number that differentiates it with other cards. Its usage began in 1920s when the merchants started giving them to customers. However, not every business accepted them during that time. All companies started accepting the cards from customers and from other firms in 1938. The creator of the earliest bank credit cards was John Biggins in 1946 (Bellis 1).

People can benefit from using the credit cards in many ways. For instance, they enable them to make payment on time. Additionally, some cards earn points each time a person purchases goods or services. One can redeem the points and use them to buy goods. One can also change the points into reward vouchers. Moreover, the card can give the consumers protection if they purchase goods worth between 100 and 30,000 US dollars. This means that if the consumers experiences problems with the cards, the card issuer will be liable.

Credit cards are also helpful since if people lose them, they can be given the emergency cash or cards especially if they are in other countries (Money 501). In the United States, people are now using credits cards in diner clubs, banks, and transport sectors. Very few people use or carry around cash due to the high usage of credit cards in the country. The cards holders are usually recommended to use the cards during emergencies only. However, most people use them everywhere and anytime (Money 501).

College students are also highly using the credit cards. This is because they receive approximately five mails and four phone calls convincing them to acquire the cards. During their initial week in college, most students acquire about eight credit cards. Research outcomes prove that 55 percent of the students start having credit cards during their first week in school. Additionally, 83 percent of them usually have more than one credit card. The college students usually use about three credit cards daily.

Some students even have debts in their credit cards. Studies show that 43 percent of students have debts in their credit cards and this brings the total credit card debts to about 3,066 US dollars. 77percent of the college students in the United States use their cards for food, clothes, and entertainment daily. Furthermore, most of them triple or double their cards from the time they join colleges to the time they graduate. Apart from the school credit cards, most of them have the non-school cards.

The graduating students usually have more than 10,000 dollars in the non- school cards. Most colleges report that they lose many students because of credit cards. They also report that the number of students lost due credit card issues is more than the ones lost due to academic issues (Nunley 1). Most students use the credit card inappropriately posing dangers to their financial status. Students are increasingly using the cards to pay their tuition fees and other expenses. Some students do not know that the cards are actually loans, which earn interests.

This means that most students overpay their college fees due to the interests. The interest rates usually start rounding 20 percent that increase if the students pay late or miss to pay them. This makes most of the students to have huge debts, forcing them to destroy the credit ratings. Additionally the debts make the students unable to use the credit to acquire their essential needs. Credit cards can also be dangerous to college students because it can make them unable to secure employment in futures.

For instance, bad credit can hinder the students’ ability to achieve their future goals (Vohwinkle). Credit cards are the major cause of debts in the current society. This is because most people do not know how to use them. To avoid such debts, people should only use them during emergencies. For instance, they should not use them to pay most of their bills. This results into the credit balances that earn interest (Money 501). The students should only use the card if they can pay their bills in full to avoid the dangers of credit card using.

This is because failure can result into payment of interests because of the balance the credit cards carry. Additionally, the students should acquire the cards that have lower limits. For instance, they can use the bank or the smaller lenders credit cards instead of the student cards. Moreover, the students should look for education loans instead of only relying on the credit cards. This is because educations loans have lowers interest rates compared to the credit card interests (CreDAbilty 1).

Works Cited Bellis, Mary. Who invented Credit Cards? 2012. Web. 4 December. 2012. CreDAbility. College students and credit cards. 2012. Web. 4 December. 2012 Money 501. Benefits of using credit cards. 2006. Web. 4 December. 2012. Nunley, Dan. College students and their use of credit cards. 2009. Web. 4 December. 2012. Vohwinkle, Jeremy. To five mistakes college students make. 2012. Web. 4 December. 2012.