College Students Can Still Build Credit History

By Today, Usa | Tribune-Review/Pittsburgh Tribune-Review, September 1, 2009 | Go to article overview

College Students Can Still Build Credit History


Today, Usa, Tribune-Review/Pittsburgh Tribune-Review


Some aspects of college life never change. Late-night study sessions. Uninspired cafeteria food. No place to park, ever.

But next year, a familiar site on many campuses will disappear: the tables strategically placed in high-traffic areas, offering free iPods, T-shirts and other goodies to students who sign up for a credit card.

Legislation signed into law in May will prohibit credit card companies from offering gifts to college students who agree to fill out a credit card application. The legislation prohibits lenders from issuing credit cards to individuals younger than 21 unless they can prove they can afford payments or get a parent or other older individual to co-sign.

Consumer advocates say these reforms are long overdue. The provisions, however, don't take effect until February. In the meantime, credit card companies can continue to market their cards, and some advocates worry that this year's campaigns will be more aggressive than ever.

"We're calling it the last open season on credit for college students," says Gail Hillebrand, attorney at Consumers Union.

Having a credit card can help a student build a good credit history, making it easier to qualify for a car loan or other types of credit after graduation. But the reverse can happen if the student runs up charges he or she can't afford to pay, Hillebrand says.

"Building credit is a good idea, but a credit mistake stays on your credit report for seven years, and those seven years can really hurt you," she says.

So how can a college student build a credit history without getting into trouble? One alternative is to become an authorized user on a parent's credit card, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling. A student who is an authorized user can use her parent's credit card, and her use of the card is reported to the credit bureaus in her name.

Adding a child as an authorized user allows parents to keep track of the child's credit card spending, Cunningham says. If the student isn't abiding by the rules, the parent can remove him as an authorized user, she says. That gives parents a level of control they wouldn't have if the child had the card in his own name, she says.

Keep in mind, though, that the cardholder -- not the authorized user -- is legally responsible for the credit card debt. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

College Students Can Still Build Credit History
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.