But many students do not realize the dangers involved. At the beginning of the 1995 academic year the United States Office of Consumer Affairs, together with the National Foundation for Consumer Credit, submitted a quiz to college students to test their understanding of the benefits and dangers of using credit cards. Both organizations hope this quiz will help college students become more aware of the regulations surrounding credit cards. Many students said they only apply for the credit cards to get free gifts offered by the credit companies. Many students, however, don't realize that overcharging or failing to pay their bills on time can seriously damage their credit status for years to come.
Many students think the responsibility lies with the user.
Credit cards aren't a problem if people are responsible enough. Although many students use their cards wisely, there are a significant number who may not be fully aware of the risks involved in using credit cards. For example, many students are unaware of the fact that failure to pay promptly even one time can double the annual percentage rate. Also, most students do not realize that paying the minimum payment on their credit card statements each month barely even covers the interest charged by the issuer. Regopoulos said the people he knows only pay the minimum amount each month.