Credit cards can be either a headache or a lifesaver for new University students, depending on how well they understand the system and how responsible they are with their new financial freedom.

Appealed to by people on campus offering free T-shirts or other items in exchange for filling out a short credit application, many new students are compelled to create the first record on their credit reports impulsively.

In a report released in May 2005 by loan provider Nellie Mae, which analyzes the previous year’s credit card statistics, more than half of all college students surveyed obtain their first credit card at school their freshman year.

This hastily taken first taste of financial independence can have a far reaching effect on a student’s life, both during and after college, according to Vanessa Stopes, a representative of Citibank, a leading provider of student credit cards.

‘The importance of building and maintaining a strong history is crucial in today’s credit-driven world,’ Stopes said.

In spite of the critical role student’s credit history can play in their financial futures, some fail to understand the responsibility having a credit card places upon them.

More than 1 in ten undergraduates fails to pay their minimal monthly payment towards their balance, which are highest at midwestern schools like BGSU, according to the Nellie Mae report.

This is a result of students viewing their credit card balance, which averaged more than $2,000, as a ‘drop in the bucket’ compared to the substantial student loans their college education requires, Stopes said.

On the other side of the statistics, one in five undergraduates pay their full account balance each month, avoiding any additional charges from their card provider.

In the hands of those students who understand the terms of their credit card agreement and the compounding effects of interest on their balance, credit cards can be a powerful tool to simplify their lives on and around campus.

‘I don’t even carry cash anymore,’ said Chad Mikret, senior, after putting food on his Visa in the Union on Wednesday.

His behavior reflects a growing trend on many of the nation’s campuses.

Seventy-one percent of students charge food and other minor purchases to their credit cards, rather than go through the trouble of carrying cash with them.

Removing the need to carry money and the risk of loss that comes with it is only one of the important benefits credit cards offer.

Automatic bill payments to assure cell phone service isn’t turned off, and cash back on textbook purchases are among the perks offered by credit companies to help students make their time at school easier.

Points that can be redeemed for Spring Break airfare or other forms of entertainment are awarded by some card offers in exchange for prompt balance payment and a high grade point average.

This is done to encourage responsible behavior in student card-holders, and to leave a good impression of the card provider with the student.

‘We know by experience that if we provide convenient services to people while they are in school, they will keep accounts with us long after they graduate,’ Stopes said. ‘And if we offer clear rewards for good academic and credit practices we will have a better prepared customer base in the future.’