Should College Students Get Credit Cards on Campus? – Episode #23

Should a college student get a credit card on campus? or should they get a credit card before showing up at college [or at all]. One related question: How bad do you want a t-shirt? The reason I ask is that many of the card issuers have small giveaways like t-shirts in exchange for filling out an application.

My logic for shopping for credit cards is the same as shopping for anything. Create an auction. Meaning, look at multiple items and compare before you buy. You can’t do this on campus. Typically, colleges and universities contract with one provider for exclusive rights to market just their brand of credit cards. The same is true for lots of products on campus, though. Try to find a Coke machine and Pepsi machine on the same campus. Likely you’ll be drinking one or the other, as the colleges enter huge marketing relationships for this right to market exclusively.

Steps to consider before you get a credit card on campus:

1. Get a bank account and start practicing with a debit card
2. Get a charge card. Charge cards must be paid off in full each month. A great first card is an American Express green card — careful, not all Amex cards are charge cards
3. Get a secured credit card
4. Consider getting an authorized user credit card with a parent