Consumer Reports advises students about the responsible use of credit -
In anticipation of the start of a new school year, Consumer Reports is blogging about personal finance issues for students. Today's post begins the series by addressing the credit card debt.
Some points to note :.
- 84% of undergraduate students have at least one credit card, and more than half have four or more
- Only 17% pay their balance each month.
- The average balance is $ 3,173.
- recently adopted reform of the credit card will regulate the aggressive marketing of credit card companies for students.
- The new rules require consumers under 21 to provide either a co-signer or documentation of their ability to repay card debt in order obtain a new credit card.
Consumer Reports recommends that students start building a good credit history by finding a credit card with no annual fee, using the card to load a recurring expense and pay the balance in full and on time each month. If you are in the market for a credit card, check our reviews and comparison chart. And if you are concerned about building and maintaining a good credit history, you may be interested to learn about monitoring credit report.