Issue date: 9/17/07 Section: News

Media Credit: Jim Moldenhauer Scott Sowers, a senior organizational leadership major and cashier at the Alamo II, checks out a customer with a credit card Sunday afternoon.

Students should think twice and do some research before signing up for a credit card at an on-campus booth.

In 1998, the U.S. Public Interest Research Group conducted a survey about credit card usages.

They asked 3000 colleges' students in schools across the country about their interaction with credit card companies.

"The findings are still valid today. College students are aggressively marketed to credit card companies whose vendors offer trinkets and junk in return to get you to sign up for a credit card," Ed Mierzwinski, consumer program director for U.S. Public Interest Research Group, said.

"Often the student wasn't aware of the unfair terms of the credit card," Mierzwinski added.

Mierzwinski said the average student graduates with three to four thousand dollars in credit card debt.

"Because of the increasing cost of education, some students are putting textbooks and even tuition on their credit cards. They get out of school, and they already are shackled with high cost credit cards," Mierzwinski said.

Students should do some research before signing on the dotted line when applying for a credit card.

"Students can be aware that credit card companies are out to take their money, and if you are going to apply for a credit card you should think about it first," Mierzwinski said.

Credit scores go hand in hand with credit card usage. It is a way to rate a person based on their ability to handle credit.

"The lower the credit score the more difficulty one may have in attaining credit," Ron Briscoe, vice- president of mortgage lending at Bank of Illinois, said.

Briscoe explained a score of 700 and above is very good credit.

A score of 620 on mortgage lending has normally been the government agency minimum or standard.

If an individual can get 680 and higher then they have very good established credit.

Credit scores are based on credit outstanding, payment history and types of accounts outstanding, among other criteria.

Research is a key technique one should use before signing up for a credit card at a booth or a local bank.

"There should be more of a plan and thought out process of research. It is the same way you would any other product or investment. What has the best terms and the lowest rates? Instead of just saying 'OK, I will just fill out this form so I can get something for free,'" Briscoe said.

Mierzwinski said credit card usage has become an increasing problem among college students.

The U.S. Public Interest Research Group started a campaign in order to ask colleges and students to take a closer look at unfair practices in the credit card industry.

For more information, visit truthaboutcredit.org.

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