College Students and Credit Card

College students and credit card

Once a college student arrives on campus, what often come next are those overwhelmed student credit card advertisements, from the banners on the campus wall, pages in the student magazine, those bank promotion counters set up in the campus to the personal mailbox, indeed, everywhere around the campus. According to a survey which have interviewed 800 local university students, 40 percent or above students claimed that they had one or more than one student credit card. Seems like having a student credit card is undeniably a trend among college students. However, the coming question is, are they well prepared to owning a credit card?

Without doubt, owning a credit card brings a myriad of benefits and convenience to students. The use of credit card can be easily accessible to shopping like prepaid shopping, installment plan and most importantly, online buying, the new trend of the coming century. One of the best illustrations has recently been the online shopping platform, Taobao Marketplace, which operated by the Alibaba group from China. The Taobao marketplace provides a convenient place for retail stores for selling products at a lower price and similarly let the users can easily find what they want from the enormous product database. Therefore the most common way to purchase items is by credit card. Granted, owning a Student credit card seems like a flawless action for youngsters. Refer to research data announced on February 2013 by the Hong Kong Monetary Authority shows that around 17 percent of people who spend using their credit cards in Hong Kong are unable to pay on time, therefore, generates interest income for banks. In fact, the main concern on the student credit card issue is, the wealth management of college students.

Students without solid financial base may always overestimate their repayment ability and beget huge debts as their main income may