My First Credit Card and the Fallacies

I was reading “Hooked On Credit! 5 Ways The Credit Card Companies Get Our Kids To Sign Up” at The Digerati Life, and the post brought back memories about my first credit card.

Credit Cards
Photo by Ian Britton via FreeFoto.com

During my orientation week, Citibank had several booths throughout the campus. Being by myself for the first time, I thought it was a good idea to sign up for a credit card. The process was very simple — just one short application to fill out. Although I did not get a card right away, I was told that it was guaranteed because I was a full-time student.

A few days later, a white unmarked envelope was delivered to my dorm room — viola, my first credit card. Reflecting back I can recall my silly ideas about what that credit card represented:

Adulthood — “I am now a grown up because I have the card!”
Financial Independence — “I can buy whatever I wanted and whenever I wanted. I no longer need cash to get them.”
Coolness — “I can go out with my friends, or on dates, and use my credit card to pay. Cool!”

Obviously, a credit card does not represent any of these. In fact, it is more like the key to financial imprisonment if not used properly. I was lucky to graduate with only $1,200 in credit card debt — things could have been much worse.

After reading The Digerati Life’s post, I was horrified that financial institutions are pitching credit cards to kids. This is akin to giving them the go ahead to drive without proper lessons and without license — it is suicidal. Like driving, credit card should be accessible to kid after they are taught about financial responsibility and the potential dangers on financial roadways.

This article was featured in:

The Carnival of Life, Happiness & Meaning #17 hosted by Life Insurance Lowdown. For more information please visit the Carnival of Life, Happiness & Meaning.
The Carnival of Money, Growth, and Happiness #17 hosted by Credit Card Lowdown. For more information please visit the Carnival of Money, Growth, and Happiness.

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7 Comments

Lynnae @ Being Frugal
September 6, 2007, 8:20

My first credit card was a Citibank Visa that I obtained on my first day on campus, too. I knew NOTHING about credit cards and thought they symbolized everything you mentioned.
My goal is to make sure my children know better before they head off to college.
Pinyo
September 6, 2007, 13:18

Lynnae, I am glad I am not alone…whew. Yes, I will make sure my children know as well. I wonder why high schools do not offer better financial education as part of the curriculum?
Lynnae @ Being Frugal
September 6, 2007, 15:46

I don’t know, but you can bet my kids are going to get a good financial education at home!
Eric
September 6, 2007, 19:20

My dad made me sign up for a credit card when I was 16. Not that he had to force me or anything. He wanted me to start building my own credit history. I had a limit of 500 dollars at the time. He gave me good advice on how to use it, and only now am I really following his advice. How I wish I would have listened more back then….
edward
September 7, 2007, 2:32

I added you in my dontworrymakemoney.info long time ago. Please do the favor of linking me to your blog. The txt is (don’t worry make money).
Pinyo
September 7, 2007, 6:20

Eric – thank you for sharing your story. At least your dad gave you good advice. My dad was very generous and helped with my expenses through college; so my financial lessons came a bit later in life.
Edward – I am sending you an email.
Fubek
September 22, 2007, 10:59

Credit card companies are like drug dealers: the first shot/card is for free.
I wonder why they are not punished like drug dealers.