Editorial: Stay out of credit card debt

Oregon has finally decided to stop blocking the sun and let us share some of the golden delight. However, besides just tanning your skin and making the outdoors more appealing, the sun can also fry your brain and encourage carelessness.

This has gotten us thinking about credit card debt, and how careless spending and a lax attitude can leave you with something a hell of a lot worse than a sunburn.

While credit card debt is usually associated with university students, those of us at a two-year community college are just as susceptible.

Banks love to set up shop at campuses, just like the U.S. Bank branch over at the Bookstore. This is so they can attract young customers that might stick with them for decades. However, it can also allow banks to prey on and possibly exploit vulnerable college students.

If you are applying for a credit card, make sure to do your homework. Look at all the different companies and choose which ones right for you. And don’t be afraid to do a little haggling, because things like interest rates can be negotiable.

Don’t accept every offer thrown your way, because many are pitfalls for naive college students. Ignore the onslaught of “free” T-shirts, mugs, key chains doilies or whatever else: Focus on the important things, like the fees, grace period, annual percentage rate (APR) and the default APR.

A big no-no is using a credit card to cover tuition. There are multiple other means of covering tuition or other school costs, such as financial aid.

If you can, try not to use cards to get cash advances. When granting advances, many companies charge additional fees. Don’t get multiple credit cards. Stick with one major credit card and reserve it for emergencies. And, avoid cards with annual charges.

Most importantly, pay off your charges every month. If you pay on time, there is no interest charged. If a company allows you to do this online, that is the best route. This rules out the chance of your payment arriving late or getting lost in the mail. And try not to pay over the phone last-minute (there may be charges for this).

While credit cards can be great in a pinch when you have no money, they get people in trouble for a reason. It can be very easy to let a few extra swipes of the card pay for two, three or 20 extra items. Any debt can build and become an issue later down the road. For some students, it may be best to avoid getting one altogether and just stick with a debit account. If you run out of cash with a debit card, you aren’t tempted to spend more than you can.

In fact, the trend of getting debit cards in college has really bloomed, when compared to credit cards. A Washington Times article noted that, overall, there were twice as many U.S. students holding debit cards compared to credit cards, according to federal data from 2012.

And it may sound like we’re repeating here, but it cannot be overstated – that you should not pay for what you cannot afford! That’s a long, painful road to go down.

This is not to say that getting a credit card in college is always a bad idea. It can be a source of great power, if used correctly. For those who are truly frugal with their spending and know when to stop, it can be quite valuable to build a good credit rating at such an early age. If you use the card for emergencies and pay debts off right away, you are on your way to good credit. Good credit is essential because it can play a crucial role in being able to rent an apartment, buy a car, get a house loan and even land a job.

A credit card can be very useful, and if maintained can hold many benefits later in life. But if you’re quick to spend and late on payments, they can be a huge headache you may want to avoid.