Better Business Bureau: Easy Money

Better Business Bureau: Easy Money

As the new crop of students are college bound, the Better Business Bureau urges them to use caution when receiving offers.  For many of these students, this is the first time they are on their own, and many of them are untrained in the use - and abuse - of credit. We urge students to be prudent with their budgets, and to take steps to insure they do not fall prey to aggressive lenders.  It is easy for a young person, perhaps away from home for the first time, to succumb to the temptation of "easy money" through loans and credit.

The BBB offers the following suggestions when considering a credit card offer:

· If you have a poor credit history or no credit history, be skeptical if you are offered a pre-approved credit card with no credit check.

· Be sure you understand the details regarding the payment plan, the annual interest, the annual fee and the credit limit.

· Determine if it is for a general-purpose credit card or if there are limits on where you can purchase items using the card.

· Be sure to understand any difference in interest rate for cash advances versus purchases.

· Understand that minimum payments made on some credit cards with a balance of $2,000 will NEVER be paid in full.

· Finally, Check with your parents or a mentor about the responsibilities of having a credit card.