[Johnna]

I think two factors contribute to the problem of young people with poor credit. The first is that it is so easy to get credit now. From the moment you begin college, you start getting credit card offers in the mail and by phone. I would assume that people who aren't college students get the same offers. There are also sales reps all over college campuses the first week of school trying to get students to fill out card applications in exchange for free gifts (t-shirts, cups, etc). Of course, no one has to accept the credit cards, but most do because of the second factor: a lack of financial education. The credit card companies certainly aren't going to go into detail about the dangers of credit; you're lucky if you get a brochure warning you not to use the card too much. Most parents don't discuss money with their children. Financial education isn't offered in most American schools, so young people don't understand things like APRs and finance charges. They certainly don't understand that having bad credit can negatively affect your ability to purchase a house in the future, especially since most young people don't think that far ahead.

I wish that financial education were a required part of the curriculum in American high schools. Personally, it would have been a lot more useful than some of the things I learned and have since forgotten.

User Detail :  

Name : Johnna, Gender : F, Race : Black/African American, Age : 27, City : Montgomery, State : AL Country : United States, Occupation : Librarian, Education level : Over 4 Years of College,