How Students Use Credit Cards
How Students Use Credit Cards
It is no secret that college students have credit cards, but it might not be clear to some what they use them for most. Four different credit agencies provided data that indicate the main types of credit cards that college students incur.
• Gasoline. Between the four reporting agencies, gas was in the top ten expenses for all of them, and the number one expense for two of them. College students often live off-campus, they have jobs, they visit family, and sometimes the car needs gas before the paycheck or financial aid comes.
• Grocery stores. Grocery stores or supermarkets were in the top ten for all, and in the top two or three for three of them. This indicates that students are not using their credit cards for emergencies; they are using them for living expenses such as gas and food.
• Restaurants. This may seem like a luxury, but in some cases it is merely an extension of the above item. Students’ irregular schedules and living arrangements do not always make it possible for them to cook food if they buy it.
• Education. This item is in the top three for at least two of the agencies. Some students actually pay tuition on their credit cards, and many more pay for books, notebooks, lab equipment and other supplies they need for classes.
• Mail order. College students are very tech savvy and use the Internet to their advantage. They might charge their internet usage to their cards, or they might use the internet to get better deals than they could from the University sponsored book stores. For example, a textbook can often be gotten more cheaply through eBay or Amazon than at the University book store, so they use their credit cards to do exactly that.
• Discount stores/department stores. This category ranked high for all four providers. It did not break down exactly what items were purchased at these stores, but one can buy almost anything at stores like this. Toiletries, school supplies, car maintenance items, clothes, beauty supplies, household items, prescriptions and electronics are just a few of the things that students might need that can be found at department or discount stores.
Other categories of student credit card spending include electronics stores, airlines, car maintenance, and other specialty stores—a category for other purchases that don’t fit into well-defined categories.
Student credit cards.com @ July 15, 2008