|intermediate||student credit cards||man - woman||02:00|
Student credit cards are becoming more and more popular, and a number of Web sites can provide information on comparing your options. With these ideas in mind, what are the advantages and disadvantages of using credit cards, particularly for people your age and in similar financial situations?
A. Listen to the recording and answer the questions.
Woman: Listen. Times are changing, and having a credit card helps you build a credit rating, control spending, and even buy things that you can't pay with cash . . . like the plane ticket I got recently.
Woman: I bought it. So, what do you think of my new entertainment center? And the widescreen TV . . . Man: Bought it? Woman: . . . and my new DVD player. Here, let me show you my stereo. You can really rock the house with this one.
Man: Anyway, student credit cards just lead to impulse spending . . . as I can see here. And the interest rates of student credit cards are usually sky-high, and if you miss a payment, the rates, well, just jump!
Woman: Ah. The credit card has a credit limit . . . Man: . . . of $20,000?
Man: Hey, let's sit down and talk about how you're going to pay things back, and maybe we can come up with a budget that will help you get out of this mess. That's the least I can do.
A few decades ago, getting a credit card was somewhat difficult and almost impossible for students with no credit history. Now, many students have their own. However, finding the best card is often difficult. What do you think are the dangers of having a credit card?
Conduct research on two different credit cards offered online that are specifically aimed at students and compare them based on credit card fees, interest rates, and benefits of each. As part of your investigation, check to see if these companies provide credit monitoring which is one component of identity theft protection services. Furthermore, examine whether there are any hidden costs that credit card users might not be aware of when using the card. Are there any other options besides credit cards that students can use to make purchases?