Be careful with credit cards

Credit cards are important to building our future lives after graduation, but it's key to remember that they can add more pressure to an already-expensive college lifestyle.

Credit card recruiters looking for students to sign up for a card wait in front of the Student Union, ready to pounce on their next unsuspecting victim.   

To lure you in, recruiters offer free food, T-shirts, electronics and anything else that may seem like a great luxury to have on a college student's budget.

The truth is that the free items they're offering do come with a price tag, which usually means signing up for the sponsor's credit card. Most of the time the credit card required to get the free item has hidden terms and interest rates that can build up over time.

Free items lure college students in because it may be something they may not be able to afford otherwise. Some may just see it as a great deal and tell themselves, "I'll be careful using it," or, "I'll only use it for emergencies."

These can be strong starting motivations, but when gas prices are constantly fluctuating and tuition is rising students all too often find that they are not able to keep up with the payments.

Obviously, it is important to build credit in order to be able to purchase a car or a house in the future, and credit cards are an easy way to do that.

But negatives arise when that credit card contains balances the student can't afford to pay off.

Credit card debt for families averages $10,679, according to an April 2009 Nilson report.

College students with credit cards carry an average of $3,173 in credit card debt, according to Sallie Mae study titled, "How Undergraduate Students Use Credit Cards."

This is more than a third of the debt accrued by an entire family.

President Obama's new credit card bill looks to change the way young Americans apply for credit cards in order to protect their interests.

With the House and Senate passing the bill, the new conditions will soon become a reality for college-aged Americans.

The bill was created to protect card owners and ensure companies do not mislead their customers. For example, a company cannot increase interest on their credit card without giving the card holder at least 45 days notice.

Concerning younger Americans, the new bill seeks to ensure those under the age of 21 are financially able to own and use a credit card before allowing them access to one.

In order for those under 21 to receive a card, they must have a co-signer to help prove the financial responsibility of the owner. Or the co-signer must agree to be equally responsible in paying back the debt.

Arguments could be made against the bill. Citizens who are 18 or older are able to go to war for our country and legally marry. Why do they need to be 21 in order to get a credit card on their own?

Passing the bill is in the best interest of the underage consumer. Employment is never a certainty after graduation, especially in the current economy. Students who aren't forced to pay their tuition or rent on credit cards shouldn't have massive credit card debt before they are able to walk across the stage and venture out into the world on their own.

Having a credit card to build credit becomes pointless when a negative score shows up on the credit report because of delinquent payments.

Interest can also add to the credit card nightmare and the new bill aims to put an end to companies trying to misuse their rate-increasing privileges.

It's highly likely that every college student will use a credit card sometime or another in their lifetime. Important decisions lie in deciding when the best time to apply for one is and how to use it wisely once it arrives.

Don't put purchases on a card that can't be afforded. Otherwise, student loans won't be the only debt lingering after graduation.