Articles+(Group+2)


 * Group 2 **

Read, review and discuss the following articles:
Are you credit card smart? Check out [|this article]from the College Board. [|The High Cost of Using Credit Cards] - What the credit card companies don't want you to know. [|Choosing A Credit Card] from the Federal Reserve Board offers advice. [|Best Credit Cards for Students, choose them wisely]

Gloria Nwafor Can you build Good Credit with a LOW Spending Limit?**
 * Articles

This article answers the question of building good credit, and what that entails considering spending limits. It also describes the ups and downs to buidling a good credit score, and how to manange credit card accounts. When it comes to accounts, you do not necessarily have to open five or ten because it can negatively affect your credit score. The article goes further to explain that building "good credit" is primarily based on how well you can handle your credit. Most people start with a low spending limit, which is good practice and proves to creditors that they can handle larger amounts. This explains why every credit card holder should strive to maintain a strong payment history. If your payment history is inconsistent, it can be very damaging to your credit. Your payment history holds 35% of the weight when it comes to building good credit. So regardless of your spending limit, if you are able to make "on-time-payments" then your credit score will be good, which quaifies you for privileges like buying a house, car, or acquiring a loan.

Corine McGarty**
 * Develop a Credit History During College

Credit cards are very common in college. One can use them and not think of the consequences of paying back the money. Because of this, more than 70% of undergraduate students have an average debt of more than $2,500. When in debt, students usually go to their parents to pay off the debt, and because their child is in trouble, they will do just that. With the parents paying, the child will never learn how to retain a good credit history and how to manage their money. With the students who do not have parents to pay off their debt, they need to get a second job and sometimes quit school to pay off their loans. Some may think getting a credit card after one is out of school is a wise choice. With waiting, they become more mature and learn how to manage money properly. However, this is not always such a good thing. By waiting so long, it takes a longer time to build credit. One needs credit to receive a loan to purchase things such as cars and houses. People who wait after college and have a steady job, are more likely to be declined a credit card. This is because they do not have any credit history at their age and therefore, a credit card company does not want to take a chance with someone with poor or no credit. Also because one does not have credit history, they could be penalized with paying fees. This is because someone has no proof of paying debts on time. Although some may think it was a bad idea for students to have credit cards in college, is it better for them in the long run. If they are careful and wise with their spending, having this credit card in college could open doors and new opportunities for them. Credit cards are good to have, if used with responsibility and care.

**Credit Card Crisis** This article, by Margaret Ivins, talks about the credit card companies  attack on college students. It breaks down each of the possible problems that can haunt students when entering into a credit card contract  they can’t uphold and ways to prevent this from happening. Some of the “causes for concern” Ivins mentions are the demand for good credit, especially when purchasing homes, major appliances, and investments, and how losing good credit while still in college could impact the rest of a student’s life. Ivins also cautions students to remember that though student loans  are very similar to credit cards, not to assume paying off a credit card balance  is as simple. College lenders are more lenient to negating payment plans, whereas as credit cards are not at all. Credit card companies try to lure in students, knowing they are in need of money and usually irresponsible with their spending, with free t-shirts and other free gifts for opening new accounts. Ivins concludes his article with three “credit managing solutions”: compare credit card fees, understand credit card payments, and MAKE PAYMENTS ON TIME!
 * Colleen Dalton **

Ask YOUNG MONEY: How can I build good credit?**
 * Victoria Neville

After reading the article, one can acquire the information that is used to get good credit. As said in the article, "The key to success with credit is to make payments on time all the time if you choose to carry a balance which you should always try to avoid." As most teenage girls, I will be heading off to college next year and I need to learn about achieving good credit. This article was in letter form from a student at USC, and it explained that her student loans were on her credit, which is one good way of achieving good credit. The article suggests that one should start slowly and carefully while shopping for a first credit card, and to be sure to read the fine print on any offer. As a student in college, this article gives good advice that if one had access to a credit union either on campus or nearby, they might make special offers to students. Since most teens do not have credit, our credit score may be lower due to our lack of credit history. Having at least one credit card to use for emergencies and keeping track of the payments is the perfect way for a college student to achieve good credit.

Consequences of Credit: Part 1 ** Here is what to know before you consider applying for credit or a credit card: "Student" Credit deals aren't always your best bet - As a student with a limited credit history you're considered a "credit risk" so although you may get the card, you'll probably have a high interest rate. Jobs providing access to money, from fast-food cashiers to accountants to middle-managers typically require credit checks. Know what your credit report says about you. Always try to pay $25 to $30 more than the minimum payment required to stay ahead of your credit card bills Be realistic about how much credit you can "afford." A good measure is no more than 20% of your net income Getting and using credit without a game plan in place is like sliding down a slippery snow covered slope in winter; the rush of the speed may feel great but you'd better brace yourself for the crash that's coming when you reach the bottom. The thrill of signing your name is not worth it in the end.
 * Lauren Gallahue