Credit Cards:Why are they such an issue?

                We all know how it feels to leave our parents’ house to live on our own for the first time. It’s exhilarating, but it can also be a bit overwhelming. There’s so many new things to explore and so much new information thrown at us. One of the biggest thing that we have put in front of us is financial decisions and more specifically, credit cards. We’ve all seen our parents use them, and as kids we always thought it was free money, very rarely were the words “bill” and “debt” tossed around. However, it’s one of the biggest pitfalls of having a credit card.

                It’s hard to understand what all that little fine print reads without a business degree or some form of translator. It talks about things like APR and interest rates, with catchy things like zero interests throw in to lure you into accepting their offer. Very few people read through all 30 or more pages of the fine print but it’s a very important aspect of accepting a credit card. You should know that you have to pay a credit card off, or pay the money back to the lender, much like a loan. What you may not realize is that you have to pay back the money you use and then some. It’s called interest and it’s how the companies make their money from you having a credit card. It’s not so much fun to have the credit card if you have to pay back not only what you used, but extra money on top of that.

                If you forget or just simply don’t pay the money on your card every month, it starts to add up. You aren’t only being charged interest but now you have the late fees. There’s only a certain amount of time you have to pay it back before it starts to affect your credit. Credit cards can be great to build credit but they can also destroy your credit much faster. You need to have good credit to buy or finance things like a car, a house, a loan and even to rent an apartment from most places. If you can’t afford to pay back the money you’re using, it’s probably a good idea in the long run to just avoid having a credit card and start a savings account with the potential money you would use. That way when you need it, you can start to buy things like a car.

                While having a credit card can seem like a great idea and an awesome way to exercise your freedom from your parents, when you’re out of college and have to start thinking ahead about your future, that little college credit card and credit card debit can come back around to haunt you. It’s best just to wait on it until you have a steady job and you’re ready to have all the added responsibility that comes with it.