If you're a college student and over eighteen years of age, you'll soon be encountering your first opportunity to sign up for your own credit card. A number of credit companies will be vying for your business from tables set up in prominent places on campus, offering Frisbees, T-shirts, and other incentives to get you to sign up. But it's something you should think carefully about before you do.

Why do credit card companies do that? College students are notoriously poor most of the time, aren't they, and since they generally don't have jobs, aren't college students considered risky candidates for credit cards? Why would credit companies take a chance on them? And even give them goodies to entice them to sign up?

Interestingly, research has shown that college students actually are good credit risks, and more importantly, students who get a card while in school tend to remain loyal to the first credit card they received. That means long-term repeat business, and profits, for the company that was willing to take a chance on them during their college days.

There are advantages to having a credit card, of course. The first is that prudent use of a card can help build a credit history at an early age, which will help you later on, when you apply for a car loan, future student loans, and even your first home. A good credit history can even give you the edge over other candidates when it comes to getting a job.

A credit card can also offer a certain degree of security in case of emergencies, when you simply don't have the money to address the situation. Carrying a credit card also reduces the need for carrying cash or checks.

But there's a downside to credit cards, too. The most obvious is the possibility of getting into debt beyond your ability to repay. You'll be required to make a minimum payment each month, which usually amounts to 2 percent of your total balance. That may not sound like much, but if you have a $500 balance at 13 percent, it'll take you 69 months to pay off the balance if you make only the minimum required payment. That's a long-term commitment, and makes purchases VERY expensive by the time they're finally paid off.

As a student, out on your own for the first time, the promise of a charge card can be very tempting. It will be easy to obtain, but a charge card can be difficult to manage if not used wisely. Once you have a charge card, you'll be tempted to use it for things other than emergencies, which can snowball out of control, with devastating results.

So before you sign up at the credit card table in the Memorial Union, ask yourself if you really need one, and how you'll pay every month. Also make sure the card has a low interest rate, no annual fees, and a reasonable grace period before you'll be charged late fees. Then, if you DO decide to sign up, use the card responsibly. Credit can move you in a positive direction toward your long-term financial health as the years go by.

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