More students bypassing credit cards completely

The terms and conditions of credit cards for college students are simple: There aren’t any.

That’s not to say that credit card companies are taking it easier on their younger audience. Instead, students are choosing to make their lives less complicated by not signing up in the first place.

“I can’t think of any reason why I would have needed to use a credit card,” Saint Mary’s College junior Cassie Fill said.

These sentiments are not uncommon. Like many other students, Fill simply doesn’t see a need to set up a credit card account, and uses a debit card instead. “At this time I have a debit card, so I use that more often because it’s more convenient for me than having to worry about using a credit card and paying it off without getting penalized for it,” she said.

Like Fill, many students worry about making payments, juggling accounts and spending more than they make.

Saint Mary’s College junior Lindsay Ellis said spending too much is a primary concern. “I think that a lot of people go crazy with credit cards, which, it would be nice to have one, but that’s also a downside that people can start to buy things that they really can’t afford,” she said. “I know I would probably take advantage of that. I’m pretty good at keeping a reign on myself and knowing what I can afford and what I can’t, but that’s a definite risk.”

Among other reasons, Fill said she didn’t want a credit card because she was afraid of the consequences of debt. “It scares me to pay for something which I don’t have the money for at that exact moment,” she said. She added that her lack of income increased the risk of overspending, causing her concern.

A lack of time to manage their money is another reason many college students are avoiding plastic. Fill said she believed students often don’t take the time to pay close enough attention to their finances. “People are so busy that they don’t keep track of their credit and their debt,” she said.

Ellis agreed, adding that students should make sure to carefully consider their choices in order to make better decisions. “I think it’s just beneficial to take time to think about these kinds of things because when you’re in college, you’re [going to] class, and you’re hanging out with friends and all of these other sorts of things, but you really do have to plan for your future. You should probably take the time to think about that.”

Fill added that students with credit cards often don’t take the time to think through purchases before they make them, and are more impulsive than those without credit cards.

“I think people that have a credit card will be more likely to make a decision on a purchase sooner than someone who doesn’t have a credit card,” she said. “If I had a credit card, I’d be more likely to spend more on things … Right now, I don’t have a credit card, and I’m more conscientious of what I’m purchasing and how much it is.”

Though arguments have been made about college students using credit cards to build up their credit scores for the future, neither Fill nor Ellis worried that the lack of an account would create problems post-graduation.

“I know that I have student loans, so that kind of helps out,” Ellis said. “As long as I’m paying those, and my parents are helping me with that, that will definitely help me with my credit in the future. So I’m not too worried.”

Both Fill and Ellis said they would encourage first and second year students to refrain from setting up credit card accounts.

“Overall, I would say [having a credit card] is a bad idea just because I feel like a lot of people can get themselves into trouble,” Ellis said. “College is an environment where normally your parents aren’t around to reel you in if you make bad decisions. I would say, maybe by the time you are a senior, then it would be a good idea.”

Fill agreed, adding that the first and second years can be challenging to manage money.

“The first and second years are a really new experience in learning how to spend your money,” she said. “I’d say when you’re getting into your junior and senior years and you’re looking into the possibility of getting a car or when you’re starting to think about moving on to grad school or getting an apartment, maybe consider getting a credit card. I think the first year at least hold off and learn how to manage your money and self-control.”

Alicia Smith is a Fall 2011 USA TODAY Collegiate Correspondent. You can learn more about her here.

This story originally appeared on the USA TODAY College blog, a news source produced for college students by student journalists. The blog closed in September of 2017.