Update: Someone in the government heard our outcries over the fact that credit card companies can set up shop on campus. The Credit CARD Act which was signed into law this summer is changing this policy. Once the law goes into affect in February 2010 (possibly December 2009), credit card companies will no longer be able to market within 1000 feet of campuses. Furthermore, they won't be able to market at college "related events" either.
Until then, the advice below will help you deal with credit card marketers while you're walking to class.
It's no shocker that many college students graduate with thousands of dollars of credit card debt. College is expensive, with books and supplies and fabulous parties that you need a new outfit for. Okay, so besides essentials, it is extremely tempting to use that credit card you have-hopefully just to build your credit while in college-on other things. Credit card vendors know this about college students, and that's why so many of them are probably camped right outside your dorm as you read this.
Ignore the Credit Card Offer Freebies
Credit card vendors will literally throw free gifts at you to get you to sign up with their card. Ignore the free sandwiches and t-shirts and make sure to get a credit card with a trusted company, such as Bank of America, American Express and Discover. You can still get great deals on these cards without being hassled or scammed.
In fact, The House Financial Services Committee on Financial Institutions and Consumer Credit held a hearing in June of 2008 to address credit card practices affecting college students and try to regulate what can be done on college campuses. Some campuses have even voted to restrict credit card vendors from being on campus altogether.
Read the Bottom Line for Student Credit Card Offers
Not all credit card vendors are evil - some are perfectly legitimate - but make sure to read the entire contract before signing anything. Some credit cards even have a sneaky rule called "double-cycle" billing, where interest is calculated over two months instead of the typical one, resulting in higher finance charges. Read Student Credit Cards 101 to be sure you know exactly what you're getting yourself into.
Go with a Trusted Credit Card Company
At big credit card companies, you can get credit counseling; you can try to negotiate interest rates. But campus credit card hounds aren't telling you how high the interest rate will actually be. These credit card companies love students because they are naïve to how credit cards work and are on their own for the first time, so they make perfect sales targets.
In fact, it's probably for the best to just avoid anyone on the street trying to get you to sign something on all fronts!