GREENSBORO, N.C. — What do college students know about credit cards?
"I pay it off every month on time, 'cause if not- you know what happens," said a college student.
A survey by US News and World Report found that 42% of college students are carrying credit card debt and for 28% of them that debt exceeds $2,000.
"If you consider they probably also have student loan debt and when you add credit card debt to that, that can really put them behind as soon as they graduate from college," said Beverly Harzog, US News and World Report.
Nearly half (49.1%) say they used their cards for school-related expenses, like books and fees. The other half (48.5%) say they need it for living expenses.
Credit cards aren't necessarily a bad thing for college students to have. In fact, with the right parameters a credit card can be a very positive thing.
"Very few students think about getting a card at 18 and that's a mistake... Because the longer you have your accounts and the older accounts you have the better your credit score later on in life," said a NerdWallet representative.
When students build credit and history and a good credit score, they can get a car loan, have cheaper insurance, and be in a good spot to qualify for a mortgage years down the road.
Most 18-year-olds can't get a card on their own, so there are usually two options.
First, parents can make the student an authorized user on one of their cards and set a limit on what they can spend. Parents can co-sign on the student's card, again, one with a spending limit. Either way, it's important to set up autopay so your student doesn't miss a payment.