Many come loaded with fees, and it's important to read the fine print. On zero-rate cards, for example, the consumer needs to know how long the low rate lasts, what the permanent rate will be, how it's computed and what fees are charged. The survey included 109 cards issued by 45 companies. Linda Sherry, Consumer Action's editorial director, said even people who send in their payments well ahead of time are getting hit with late fees. And while it's possible to reverse those fees, it's annoying for customers to have to do so, she said.
Companies pitch their cards to students as a way to establish credit.
They're hoping it'll blossom into a more profitable relationship down the road. Students have dozens of credit cards to choose from, but student cards aren't always good deals, McKinley said. A Visa card marketed to University of Minnesota athletes has a 2.9 percent rate for six months and a 16.4 percent variable rate after that, but a huge 19.99 percent rate on cash withdrawals. McKinley suggested that students look into getting cards at banks where they or their parents already have accounts to see what kind of deal they can get there before applying for a card marketed to collegians. They're not actual credit cards, so they won't create a credit record for the teenagers.