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Old 03-06-2011, 02:02 PM
KatherineLee88 KatherineLee88 is offline
Junior Member
Join Date: Jan 2011
Location: Iowa, USA
Posts: 25
Default Re: First credit card- good for credit rating??

Sorry to get a little off topic... but...DavidBiddy, how are you suggesting people finance their college educations without taking out loans?

I wish I could say I have never paid a penny in interest... and I can for credit cards. But I pay $40/mo in interest on a student loan. I wouldn't have been able to go to college without it. I wouldn't be able to get my current job without my bachelors. I wouldn't be able to be in graduate school working towards a PhD without these loans.

Not everyone has the bank of Mom and Dad saving for their college educations with 529 plans. My parents didn't give me a penny.
Avoiding credit is impossible for most college students. College degrees are becoming a necessity in this society. What's the no-credit solution to this dilemma?

If a student has to take student loans, they've already enter into the credit-usage world. Bankruptcy eliminates credit card debt, but doesn't eliminate student loans (they cannot be discharged in bankruptcy, they follow you for LIFE). It seems that just trying to get a job in this world requires credit and college students already start out their credit debut into society with a loan that follows them for life.

I suggest we assume everyone can be taught personal finances and credit usage - and how to use self-control to maintain them. This is a better solution then the assumption that all should avoid credit because they lack self-control.
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