A University Recreation (UREC) program will warn students of the dangers of credit cards while providing tips for using the resource responsibly.

The UREC’s program, “Credit Cards, Reports, and Scores,” a presentation about responsible credit card usage, is Tuesday at 12:10 p.m. and 5 p.m. It will take place in room 203 of the Smith Gym.

“Credit affects all different areas of life,” Brad Stewart, Fitness and Wellbeing coordinator with UREC, said.
The goal of the presentation is to help students develop a better understanding of what credit is and help them manage credit cards.

“This is a big issue, especially with students because they might not have had a card before or they were more managed by their parents,” Stewart said. “They don’t pay attention to their habits.”

Freshman political science major Cynthia Pham said credit cards can pose a problem for students.

“In our society, impulse spending is a big problem,” Pham said. “People don’t understand consequences. In college, you should try to budget your money.”

Pham said she only uses a debit card for these reasons.

“I know it’s my own money, as opposed to spoiling myself and dealing with the consequences later,” she said.
There are various issues with credit, but the biggest problem is that students generally don’t understand how the interest in credit cards works, Stewart said.

“What people don’t realize is that when you buy something, if you don’t pay it off right off the bat, you’re going to be charged interest until you do,” he said.

Stewart explained that interest compounds on itself every month, so usually people can pay “one-third of the purchase amount more” before they pay off the beginning dollar amount. For example, something that costs $200 can end up costing $250 or $300.

Jacob Baker, vice president and district manager of U.S. Bank Pacific Northwest On-Site Banking, has similar thoughts when it comes to young adults owning credit cards.

“The most common problem is an unfamiliarity on how to utilize credit responsibly,” Baker said. “Too often young adults and adults use credit cards to accumulate debt as opposed to a payment tool or for emergencies.”

Stewart said he hopes the presentation will help students with credit and give them tips that people do not normally realize. The solution to solving these problems is simply to learn and understand them, he said.

“Knowledge really is power when it comes to credit,” Baker said.