A few days ago I received mail in a glossy envelope, the type specifically made to prevent outsiders from knowing its contents. As usual with suspicious packaging, I held my breath as I opened the envelope to prevent the possibility of anthrax poisoning. Inside, I discovered something just as potentially lethal:
An invitation to apply for a credit card.
The main cause for America’s recession period and excessive debt is simply that the country borrows what it never was able to pay. The government has borrowed approximately $114 trillion at the moment, while the average American debt is about 7.9 thousand per household.
This deal in particular offered no interest for nine months. “Hmm,” I thought, “I have been meaning to purchase some quality speakers to make beats with, as well as a Rosetta Stone language or two—whoa! What am I saying?”
You see, credit is not exactly evil, but it definitely can threaten your fiscal wellbeing when you use it to purchase items you wouldn’t otherwise have the money for. There are few generally accepted exemptions to this rule, including purchasing a house and a car, deemed by many as neccessities worth financing.
Now that we’ve cleared up the pros and cons of credit cards, I’ll admit that this particular offer, made by Discovercard, is actually worth looking into. With their college student card, they offer 0 annual fees and no interest for nine months. Why? In order to help me build my credit, they state. A good credit history is crucial to getting great deals on everything from financing electronics to a house. With a high credit score, you can finance certain items with low or no interest charges!
“Still not sure? Ask the professionals… your parents,” suggests a small slip of paper included in the package. The message here is that Discovercard is not trying to deceive you or hit you with flagrant fees and interest, and if anyone can detect a scheme, it’s your parents with their vast years of experience. After all, how else do you think they afforded that nice minivan they shepherded you around in during your adolescent years?
Long story short, approach credit card deals with dire caution and read the fine print. If you can take advantage of a college card deal without going crazy, I would highly advise you to do so!
As for those loans, now that’s another story. If you can escape, do so!