NIU

Finance Class and Credit Cards

Posted by Stacy on Monday, April 20, 2009 1:34 PM

I remember in my finance class we learned a lot about credit cards. We talked about things like Smart Balance Transfers and also what should be charged with credit and what should not (if the payment outlasts what you charged it should not be put on credit, like a meal or a movie).

This class was enjoyable, definitely applied to all of our lives and was extremely informative and helpful. HOWEVER, it came about 2 years too late for a lot of the students in the class (and I'm assuming many that took it at other times as well). Thankfully I am not in this boat (really, thank God) but a lot of the students were already into debt by their junior year when we could take the class. It isn't offered to freshman and sophomores; however that happens to be the time when people start getting credit cards (when they leave home and are on their own at school) and by the time they reach their junior year and are taking this class, they have already accumulated some sort of credit card debt most likely.

We do talk about things like balance transfer credit cards for those who have a high interest card (and most students do), a lot of times can find 0% APR. But the talks we have about establishing credit and paying your bill on time and even negotiating a lower interest rate with the company before you get into trouble really do come too late in a lot of cases. I really do feel like this course is extremely informative and helpful and would be very beneficial, but it definitely needs to be opened to students starting their freshman year of college. This way, while students are getting their credit cards and before they actually have a chance to run themselves into debt or use it irresponsibly, they can learn about the consequences and also about how important it is to work on establishing good credit throughout college.

Right now, we are laying the stones for our future. We want to graduate and be able to buy a home in the near future or a car and if you spend irresponsibly throughout college and prove that you aren't worthy of credit, you are going to end up like one of those commercials for the credit reports where the kid is living in his parents basement and I am guessing that's not what most people want.