This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
14 hard facts about college credit card use
It was never a consideration to use a credit card during college. I definitely could’ve got one, but the desire was never there. I’m thankful it wasn’t because I already had student loan debt; I didn’t need more debt.
Not having a credit card ensured I did not accumulate any personal debt on top of my student loans, making the payoff process that much quicker.
I’m not implying I couldn’t manage my money prudently if I owned a credit card, but since my income was lower than it is now, and my budget was stringent, owning a credit card would increase the temptation to live above my means. During college, I was also ignorant about credit cards, which is not the person to be before getting a credit card (credit card companies love to take advantage of ignorant credit card users).
Here’s what I would do if I owned a credit card in college.
If I did hold a credit card in college, here’s what I would do to ensure I avoided the many traps that credit card companies set up for you:
Never leave a credit card balance of more than 1–5% of the credit limit – if necessary.
Pay the entire credit card bill at the end of the month before the next billing cycle starts.
Set up automatic payments, and ensure the payments are successfully processed.
Don’t apply for more than two credit cards. Managing two credit cards is sufficient for most college students. (Note: it’s always good to have more than one credit card in case one credit card has technical issues – especially during travel).
Hard Facts About Student Debt
Education Data Initiative (Source)
43.2 million student borrowers are in debt by an average of $39,351 each.
The outstanding Federal Loan Portfolio is over $1.59 trillion.
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College Finance (Source)
On average, college students have over $3,280 worth of credit card debt.
64.8% of college students have some form of credit card debt.
The most common credit card mistakes college students make are only paying the minimum payment and missing a payment.
The top three spending categories for college students with their credit cards were online shopping (70.1%), dining (50%), and gas (44.4%).
Credit Repair (Source)
71% of fourth-year college students own a credit card. This number gradually increases starting from your first year of college.
The average number of credit cards owned by millennials is 3.
50% of millennials have maxed out their credit limit at least once.
18% of college students have used credit cards to pay for college expenses.
>55% of recent college graduates admit not using a budget during college.
74% of college students agreed that their finances were a source of stress and anxiety.
55% of college students with credit cards agree it’s easier to balance their budget when using a debit card rather than a credit card.
~1/3 of recent college graduates stated they were either wholly unprepared or mostly unprepared to handle finances while in college.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.