Loans Answers

why some people aren’t “frugal”

Question: It’s hardly fair to blame the companies. They are in business to make a buck. It’s importrant for them to get their name in your face >as early as possible.

Answer: True; however, there is another way of looking at it. Not all kids are taught frugality by their parents. The comapanies know this and in a way are counting on it. But, wouldn’t it be *much* smarter if the companies targeted people who had the money to spend on payments every month for years? On the “student applications, they don’t ask if you even have an income, let alone a way to pay for your charges. The credit card companies will give a college student a card before they give a person who is older, has no credit history…but has a steady income. Seems to me they have a screwy way of getting that buck. It’s true that college students will spend more initially, but after a certain point….in my experience, mind you….the student will either cut up the card or be forced to give up the card and end up with a bad credit rating. I like Mari, had experience with this in college. Put bluntly, I ended with the bad credit rating. OTOH, my uncle (who pays with cash for everything), who is a spendthrift, was 42 with no credit history. He has a 6 figure income, and couldn’t get a card. In the long run, he would have spend MUCH MUCH more than I did, considering that my bills totaled less than a few of his “toys”. Isn’t it ironic?

And anybody in college *should* have enough sense >to spend responsibly. Credit card companies just give you the chance to >do that.

Yes, they should, but as I said before….not all students are taught frugality by their parents. Also, it’s pretty tempting for a student who is pretty much broke to use the card for books and school related items when they find they are short on cash.

Related Posts

• Credit is Terrible
• I’ve got BAD credit, but want to buy!
• Need advice
• Home equity line of credit for flipping properties
• US gives up on Japan and strong $ policy
• Mortgage refinancing question
• No Income Check Loans?
• A bad credit personal loan can be aviled by people with bad credit
• Anyone else think the stock market is a huge pyramid scheme?
• Auto debiting instead of checks
• unbiased info on specific builder
• Why tax increases never pull in the money they project

Filed under: Bad Credit Loan