In Recognition of April’s Financial Literacy Month, Sallie Mae
Provides Students Tips for Savvy Credit Card Use
Over the past two years, college student ownership of credit cards has
declined from 42 percent (2010) to 35 percent (2012), according to
research from Sallie Mae and Ipsos. Freshmen were least likely to use
credit, with 21 percent having a card in their name compared to 60
percent of seniors.
Most college students exercise caution with credit cards: 33 percent of
card holders had a zero balance, 42 percent had a balance of $500 or
less, and just 24 percent had a balance of more than $500. Nearly one
quarter (23%) of parents help pay at least a portion of their student’s
credit card bill.
“College is a time for building not only book smarts but also money
smarts,” said Patricia Nash Christel, vice president, Sallie Mae.
“Sallie Mae is committed to providing information that helps students
use credit wisely and practice savvy financial habits.”
According to recent Sallie Mae research, students are optimistic about
their financial abilities as 60 percent reported they are good or
excellent at managing money. In recognition of April’s Financial
Literacy Month, Sallie Mae released an infographic
about recent student credit card usage trends.
The company recommends the following tips to keep credit card use in
check:
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Charge only what you can afford to pay in full each month.
Don’t end up paying interest on pizza and iPod downloads.
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Pay your bill before it’s due. Don’t wait until the last minute
and accidentally incur a late fee.
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Remember that a credit card is a convenience — not a source of
spending money. Ask, "do I need it, or do I want it?" If you don't
need it, don't charge it.
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Keep copies of sales slips and compare them to charges on your bill.
If you suspect a mistake—or worse, identity theft—contact your card
issuer immediately.
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Don't accept increases in your credit limit. Keep it modest.
Sallie Mae (NASDAQ: SLM) is the nation’s No. 1 financial services
company specializing in education. Celebrating 40 years of making a
difference, Sallie Mae continues to turn education dreams into reality
for American families, today serving 25 million customers. With products
and services that include 529 college savings plans, Upromise rewards,
scholarship search and planning tools, education loans, insurance, and
online banking, Sallie Mae offers solutions that help families save,
plan, and pay for college. Sallie Mae also provides financial services
to hundreds of college campuses as well as to federal and state
governments. Learn more at SallieMae.com. Commonly known as Sallie Mae,
SLM Corporation and its subsidiaries are not sponsored by or agencies of
the United States of America.
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