When I was 18, I got my first credit card, but I didn't understand how it works. I was under the impression that whatever I would use, I would only pay back that amount. Then upon reading their policy, I found out there are interest charges tacked on to my total. I used my credit card until I maxed it out, and I never made a payment. It took me 5 years to payoff my debt, and it was more than double of my initial credit limit. Do you think credit cards are targeting younger people because they're so naive?
I am fully agreed with you in this matter. I am from Pak and here CCs are only given to People having very good credit record and at the age of 25.
Yes. Absolutely. They target younger people because they want you to fall into a hole, and they hope that you'll never get out of it. Your credit has been shot from the jump, and now you are forever high risk. That's what they want. They don't want you to ever learn better. They also target people who already have a bad credit rating for the same reason.
I definitely think so! When I was 20, Bank of America gave me a card with a $5,000 limit. At first, I only used it when I really needed it, but I learned that you could get cash advances and started using it for everything. I, too, was under the impression that you just paid it back, no big deal. Granted I used a lot of it to help my mom out financially, but it was still a very bad idea. And then when I was 23 or so, I found myself without a job. I had this $30 a month bill, but I was struggling to pay it. A friend of mine (who was in debt up to her eyeballs, so I'm not sure why I listened to her) told me that it was okay to "skip a few months." Before I know it, my $30 a month bill is up to $300 a month and I owed like $7,000. I ended up having to work a deal with them and I spent about five months selling everything I owned to pay it off - all of my books, movies, decorative stuff, things I'd collected over the years, clothes, etc. It was a humiliating experience, but it taught me a lot. That's why I get mad when I see kids these days with iPhones and laptops whining about not being able to pay bills.
Yes. I mean, targeting college kids without jobs? Hello? I explained how credit cards worked to my kids before they ever got one. In fact, my son still doesn't have one. He wants to wait until he's more financially stable. I help my daughter figure out interest rates and balances and budgets. The real problem isn't really the credit card companies. There's lots of information out there on how they work. The real problem is a lack of practical financial education. No one learns how to balance a checking account or how credit cards work or when to start a retirement account or how buying a house works. Everyone should know those things before graduating from high school. Some parents teach it to their kids, but some parents don't know much about those things themselves.
I personaly don't use credit cards. I have a debit card attached to a checking account. I found that I do better with cash. I take what my budget is out of the bank and only spend that. Its amazing how different you spend and what you will get when you have a limited amount with you. I don't take my card with me when I shop. I have tried to instill this lesson with my kids. So far the older ones have never had a problem with credit cards.
I do think they target the young population. And I also think that the financial services industry is corrupt from the inside out. Debt is money...to them. I was given pre approved credit cards, student loans and the rest...before I even knew what they were. The lack of financial education goes hand in hand with the companies who push their products on young people. Yes, we need to be responsible...and I was, but no one explained to me what was happening. I had to look it up, while still at university.
Yes and no. Yes, that's obvious, the same reason you wrote. But no, because I believe there are more reasons for that. Young people feel particulary better (better than their friends) if they've got a credit card. It's sort of sign of wealth. And young people feel so proud having it. And not only young people are so naive
I personally don't believe in credit cards, I only use debit cards. The reason is because if I don't have the money I don't get it, it's that simple.
Yeah I believe they target the younger people. They know they have a better chance of a young person not having the life experience or the financial knowledge to fully understand what they are getting themselves into. This will make the financial institutions make a ton of money in interest! That and if they get themselves into debt and become a higher risk, the banks know they can't go elsewhere for credit. This keeps them stuck with the high interest rates of the company they are in debt with. I personally believe there should be no such thing as credit cards. They are a waste of money and get too many people into trouble. Yes people are responsible for their own financial actions, but it can get hard when they lose a job or other unforeseen circumstances arise. Even auto loans are a waste of money. Many people end up paying almost twice the vehicle price for their vehicle.
Not owning a credit card myself, I think it's a rather horrible idea to give teenagers who are barely adults in the eyes of the government credit cards. Especially in college where they can easily rack up debt like no body's business. I'd much rather have one credit card when I'm 25 for emergencies and one debit card linked to a bank account from 18 on. That way, if you run out of money in the bank, it's your fault and there's no debt to pay off, it's just gone. So afterwards, you have something to think about next time you buck wild on shopping.
A few years ago, one of my kids wanted me to cosign with her for a store credit card so she could take advantage of a great price on a laptop. I refused to do this, and we worked out another way for her to get a laptop without debt. Not long after that, she got sick and lost her job. It really illustrated the idea that those without experience think that their job will always be there, that a monthly payment will always be easy to make. After the financial difficulty that came from not having that job, she is one of the most frugal people I know.
Wow, that's harsh, man. At least you were able to pay it off, eventually. I have an uncle who just chose to pretty much run away from his bills >_>. So we occasionally get these calls from various credit card companies asking for his whereabouts, and we don't even know because he has decided to hide himself from us, too. Anyway, I was given my own credit card when I was 18, but I've never used it (only used it to verify my PayPal account, and that was pretty much it). I guess I was too scared of the possible consequences, even when I actually had the money to pay it off anyway.
I think they do target younger people that have less experience in life. Back in the olden days when I got my first credit card, they didn't have atm, or debit cards yet. You either had to pay cash or write a check. If they had debit cards with a mastercard or visa logo, back then, I don't think I would have fallen victim of the credit card rabbit hole. But lesson learned.
Banks often target the young population because owning a credit card is a sign of growing up. It's that sort of power you can flaunt to your friends. It isn't a healthy obsession but it's happening. So to all youths and teenagers out there, it's better having cold hard cash to spend than using a credit card and having to pay for interest rates at the same time.
Yes, they do. Credit card companies specifically target college students because they know they'll use them for books, college, food, beer, etc. Credit card companies also know that young people who just graduated aren't usually responsible and they are ready for freedom, which means they are likely to go on charging sprees.
I do think they incorrectly target younger people due to them being vulnerable, which of course, is wrong. I have never touched a credit card in my life simply because I was educated upon what the fees associated with them were like, and to say the least, I wasn't impressed. Only piece of plastic money I've ever touched is my Debit Card, and I have no overdraft allowed on it whatsoever, so I can't allow myself to go into debt, even if I wanted to do so.
This is actually something that really bothers me. Often times at opening events and college tour days, the banks and credit card companies will set up on the lawn, trying to lure young students into contracts. It's ridiculous how many students rack up crazy amounts of debt without fully understanding how it works at all.
Yes, they definitely target the younger people. It is sad that the companies do this to our youth and then shoulder them with another bill which they cannot afford on top of college debt.
I agree 100% that credit card companies target young ones. I got my first card at 18 as well when I was headed to college. I received a few with large credit lines and it did not take long for those cards to get maxed out. I was using them for school items and also for every day needs. I thought just paying the minimum balance was enough but it wasn't. It's been years and my credit has finally recovered from the damage that was done when I was younger. I think the younger generation needs to be trained properly on the usage of credit cards. They are great tools but can be dangerous if not used properly.
