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A Crash Course in Credit Cards for College Students
How students can avoid the free T-shirt trap and mountains of debt post-graduation.
 
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Posted 10:35 PM EST January 26, 2009
ExtraCredit SmartMoney Insiders
2 Comments
It's important for students to understand all the consequences such as employers, insurance companies and landlords all check credit records. More importantly, if they start spending more than they make while in college, they will create a lifelong habit that could lead to huge debt consequences as their income and available credit increases.

Bill Pratt, Author of Extra Credit: The 7 Things Every College Student Needs to Know About Credit, Debt & Ca$h - http://www.ExtraCreditBook.com
Posted 10:38 AM EST October 08, 2008
Posted by: johnu1
A couple of corrections...

1. '[College students] don't realize that anything they do now will stay on their credit report for the next seven to 10 years.'

That's incorrect. Positive information remains much longer than 7-10 years, especially if it's an active account. I believe he is referring to negative information that has a statute of limitations normally between 7-10 years.

2. 'By carrying a balance of less than half of the available credit, for example, a student can maintain a solid credit score'

Again, incorrect. Having a usage percentage of 50% is a score killer. Nothing magic happens at 50%. Your target should be as low as possible, less than 10% is best.

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