Give College Kids Some Credit–or Debit
Thursday, September 11th, 2008The Wall Street Journal is reporting today that financial service companies are offering pre-paid debit cards on college campuses this fall. In an effort to help students curb or even avoid debt, colleges have been tightening the reins on credit card marketing on campus.
While pre-paid debit cards bypass the problem of ever being in debt to begin with, they do NOT establish a credit line, which credit cards do. Credit cards often get a bad rap because of their high interest rates, but they are necessary if you’d ever like to buy a car or a house some day. Credit cards establish your credit history and your credit score. By using credit cards responsibly—as in paying off most or all of your balance each month—you will not only keep to a budget, but also earn a high credit score.
Will you get a pre-paid debit card or will you apply for a credit card? Let CampusCompare know what you think.
