More College Students Falling Into Credit Card Debt
More college students than ever are relying on credit cards to get by, according to a Sallie Mae study.
Credit card usage increased significantly between 2004 and 2008 among college, and many may soon be seeking debt relief. More than 80 percent of students have at least one credit card, and 50 percent of them have at least four, according to the Sallie Mae survey. The average balance carried by undergraduates rose to $3,173; in 2004 it was $946.
This sort of financial behavior can have negative impacts on a young person's credit score. Jeanne Salvatore, senior vice president and consumer spokesperson for the Insurance Information Institute said that "learning how to manage student loans, credit cards and other debt is essential for new college graduates. Establishing these financial skills early on and working to build a good credit standing will affect their lives in a surprising number of ways both now and in the future."
College students can receive access to a free annual copy of their credit report from any of three government-approved agencies: Equifax, Experian, or TransUnion.