Released: July 20, 2006

Prudent student credit card choices

Source: By David Ellis, CNNMoney.com

It’s no secret that credit card companies love college students. And they’ll shower them with everything from free T-shirts to beach towels just to get their business.

That’s because these kids are potentially lifelong customers who will spend, spend, spend says Bill Hardekopf, CEO of LowCards.com, a consumer credit card information Web site.

The average college freshman carries over $1,500 worth of credit card debt, according to a 2005 study published by the student loan outfit Nellie Mae. And by graduation, that amount has nearly doubled.

But college student or not, credit card debt can put your credit score on a fast track to ruin. And that can hurt a graduate when it comes time to buy their first car or even a home.

So before your son or daughter signs up with that credit card representative on campus who is handing out freebies, have them do a little research. It could not only save them from some headaches later on, it could save them some money right now.

Find a card with a good rate. Zero percent interest for the first six months. It may sound like a good deal, but what students should keep an eye on when shopping for a new credit card is the annual percentage rate.

Read Full Article: Prudent student credit card choices