4 ms·
Not really when other types of unsecured debt are wiped out by bankruptcy. Your credit card debt can be erased by chapter 7 bankruptcy even if you used it to fu
by nether 13y ago
Not really when other types of unsecured debt are wiped out by bankruptcy. Your credit card debt can be erased by chapter 7 bankruptcy even if you used it to fund an awesome vacation that no one can take back.
- sliverstorm 13y agoYes, but a credit card requires credit. Student loans are specifically crafted to be obtainable by people with no income and no credit.
- RougeFemme 13y agoI know the credit cards companies have cut back on this, but. . .credit cards for students don't require credit. . .and are specifically crafted to be obtainable by students with no income or credit. Students with income and/or credit can get better deals with "non-student" credit cards.
- jlgreco 13y agoI believe that the Credit CARD Act of 2009 changed much of that. IIRC if you are a student with no income then you need to give them a collateral the size of your credit limit.
- sliverstorm 13y agoIndeed, and when I was a student I got my first credit card with a modest job (< $10k). What was my initial credit limit? $400.
- fnordfnordfnord 13y agoIt is pretty impossible and probably unreasonable to expect your average college freshmen to have a good credit rating.
- sliverstorm 13y agoNo one expects them to. The point is the credit card company accepts the risk of default on no-collateral loans in part because they have confidence (credit report) in the chances of being paid back, while a student typically has no such supporting evidence to back their case.
- lmartel 13y agoI'm a college student. I have two credit cards with credit limits of $500 and $1700. My tuition (with room and board) is $58,000 per year. That's the difference.
- fnordfnordfnord 13y agoThose cards generate lots of fees. How can the CC have confidence in the credit report when they issue cards to people with virtually no credit. They are wildcatting. https://en.wikipedia.org/wiki/Wildcatter https://en.wikipedia.org/wiki/Wildcatter
- sliverstorm 13y agoRight, but just imagine the fees you'd need to establish on student loans to wildcat them! Late billing fee: $10,000 Processing fee: $1,500 (Etc)
- fnordfnordfnord 13y agoAre you assuming that every college student who is issued a $600 credit limit is a deadbeat? I don't think that's the case. edit: My point in the post above was simply that _if_ it is possible on average for an 18 year old to have a 'good' credit rating, _then_ credit ratings are practically without meaning.