Ever wonder why college students are swarmed with credit card offers? It's because credit card companies think students are suckers. Many students make bad choices with credit cards, and credit card companies benefit. An important money saving tip for college students: use credit cards wisely!

Credit Cards and Interest

Many student credit cards come with very high interest rates. Interest refers to the money you have to pay if you buy something and pay it off in installments instead of all at once. When you pay something off in installments, you pay an extra fee every month, based on how much you owe and the interest rate. (Almost all loans are paid back with interest payments, including mortgages, car purchases, and student loans.) If you have a low interest rate, the extra money you pay every month won't be too bad. If you have a high interest rate, you'll be paying lots of extra money every month, and it may become very difficult to pay off your credit card debt!