Just Put It On My Tab

As the economy (slowly) recovers from the pummeling it’s taken over the last few years, more and more companies are granting credit lines and loans to students. Capital One and Wells Fargo are two companies who are taking the risk by allowing those with little or no credit to apply for credit cards. Far from being the boogeyman used to scare teenagers, credit cards are becoming useful to build their credit scores, establish smart spending habits, and help out in emergencies.

I was one of those people who never wanted one. I had heard way too many horror stories of people graduating college only to be saddled with crippling interest payments on top of their student loan debts. I also knew that the grasp on my self-control was tenuous at best when confronted with a sleek array of flat screen TV’s and computers at Best Buy.

Photo by scoobiezer via Flickr.com

Now that I’m about to make the transition out of university life and into the real world I thought it was about time that I establish some credit. After all, I was much older and wiser now than I was as a freshman, right? I used my money for bills and gas, toothpaste and food instead of going out. I budgeted, didn’t drive anywhere unless I had to, and ate mostly at the restaurant I worked at to avoid spending money. I was ready.

As luck would have it, I popped open the mailbox one day and there was a pre-approved offer from Capital One wedged between my utility bill and a very bleak bank statement. I filled it out and sent it in. I thought about how many bills I could get on top of. How I would only use it for emergencies, if I broke down on the highway or if I needed to go to the doctor.

Sure, I used the money for bills at first. I didn’t even keep the card in my wallet but put it in a shoebox on top of my refrigerator just in case I was tempted to use it one night when I was less than sober. I paid my utility bill, cell phone bill, finally bought those wind-shield wiper blades I desperately needed, but it didn’t stop there. Suddenly I started to realize that I “needed” more and more. I needed new work shoes because mine had scuff marks. I needed to completely fill my tank instead of putting enough in to get me through the week. Because I had the ability to spend more, I did. But not on things that were absolutely necessary. When I reached the credit limit I promised myself I’d pay it off when I got my next paycheck, or student loan disbursement. But when they came I needed them to pay off my current bills.

I’ve been paying my credit card payments on time for six months now and have never been able to get it under the $600.00 mark. Every time I come close something happens and I’m forced to use it. Why did it seem like I never “needed” a credit card until I had it?

As credit cards become increasingly available it’s tempting to apply for one. Especially for students who pay their own way and occasionally need a leg up on their bills. I also know that there are many, many people my age who have much more self-control and would probably do a better job at handling a credit wisely and responsibly. As for me, I know that I’m done with them, at least for now. Credit cards only offer the illusion of having money, a realization I came to after I hit my limit and had to start paying it back. More spending power means more responsibility, a lesson I learned the hard way.