The implications of credit cards on university students

Abstract

This study aims to provide a better understanding of how university students use their Credit Cards. Credit cards have become essential in our everyday lives. Nowadays credit cards owners regard them as a necessity and that they cannot do without. The credit card, despite all its benefits, entails with it many social and economic repercussions caused by the individuals and the institutions that proliferate the growing trend and status of debt. This study examined the credit card payment practices of university students. Students may benefit from this study because establishing a good credit history is important for obtaining future loans from financial institutions to purchase cars and houses. University administrators may programme better courses for students to understand better the services and products offered by financial institutions especially credit card use. Financial Institutions may also benefit from this research as they may better administer the students' credit card programmes to meet the students' limitations. This research study also aims to increase parents' understanding of how, or why their children are becoming burdened with credit card debt. This information may help parents better prepare their children for the financial implications of credit cards. The results revealed several interesting trends. Students who use their credit cards wisely are the ones who are at their first years at university and who acquired their cards prior to enrolling in university. Those who use less judicious payment practices include senior university students and graduate students and those who acquired their credit card during university, and those with more than one card. These findings suggest that credit card payment practices deteriorate as students approach adulthood. This trend may contribute to the increasing level of personal debt in Malta.