Why is it so easy to get a credit card?

Beingthe owner of a credit card can be disastrous especially in today’s societywhere it is so easy to obtain one. In most states, in order to be eligible fora credit card you merely have to be eighteen. Companies today don’t care
aboutparental consent or even if you are employed or not, they only care that
youare eighteen and legally responsible to satisfy a contract.


Research done by The Education ResourcesInstitute and The Institute for Higher Education Policy shows that, in today’ssociety, seventy two percent of college students own at least one credit card.This is a dangerous move because college students could be using the cardirresponsibly because of the student’s financial history and experience. So whywould a credit card company give a  cardto these young adults knowing that they’re at a high risk of not responsiblykeeping up with their finances? The credit industry loans you money, justhoping that you mess up with your payments. They will drop you in a hole ofdebt without you even knowing and they are more than happy to do it because youhave an obligation under law to pay them. Most young adults don’t yetunderstand how ruthless the credit card industry can be, and the effects thatit could have on your life.

For example, a young man decides tobuy a Visa credit card because he has a job and has money saved in the bank. Hehas already been through the weight of costs and benefits and he feels thatthis is a good decision because of the opportunity and transaction costs. He hasmoney, longs the convenience of being able to make purchases online or over thephone, and having the money whenever you need it. For the first couple monthsthings are great, but then he gets his bill to Visa on Dec. 5^th whenit was due on the 4^th. The next month when he gets the bill he willhave a late fee and his interest rate will have risen 15%.

Part of the ruthlessness of thecredit card company is that they can raise you interest rate so drastically.They can raise it to any level that they want, however, they must realize thatthey are in a competitive market and people will look for the company thatoffers the best interest rate. What he doesn’t realize when looking for abetter interest rate is that all the other companies in the market know howreliable he is through his credit score. All companies involved in credit andlending sends incidents like late payment to credit bureaus which then assignyou a credit score. The more incidents, the lower your score will be. So, witha low credit score interest rate will be very high now matter where you go.

Credit card companies don’t justgive anybody a card, but the actually try to suck you in to getting one. Also,once they suck somebody in, they try to keep you there by only billing you forthe minimum owed which is their interest rate and financing. They don’t sendyou what you actually owe them; they just bill you every month for allowing youto spend their money, for which another bill is just piling up faster than youwould ever imagine. On top of the credit card debt most people need to getloans for things that they want to do in the future. Major credit debt such asthis can be dreadful for your future if not handled very responsibly. Just saythat a man is in credit card debt and wants to now apply for a loan to get anew car. If he does get the lone it will be at a very high interest rate so thecar will end up making any car you try to buy so much more expensive.

Creditcard debt is so devastating to the hopes and dreams of many people because ofthe fact that cards are so easy to acquire and so difficult to get rid of inentirety. But credit card companies don’t want to get rid of you because thelonger they have you, the more money they will get out of you, which is allthey care about. That is what makes them so easy to obtain.