A credit card is a valuable financial tool when used properly. You can build your credit score, learn about money management, earn rewards and even split up a large payment over several months if needed. Unfortunately, you can qualify for a credit card long before you understand how they work, what habits damage your credit score and how debt grows once you accumulate a balance. This especially applies to college students, who are often first-time cardholders.
Do college students take on more debt than the average cardholder? What do they most often use their credit cards for? To help you understand how this population uses credit cards, we’ve rounded up some of the most helpful statistics.
Average student credit card debt
Student credit card debt has risen in recent years. Between 2016 and 2019, the average student credit card balance increased from $1,076 to $1,423, according to data from the Sallie Mae Majoring in Money 2019 report. That’s well below the average credit card debt in the U.S., which is $5,221.
Still, students should avoid unnecessary debt. Credit cards can be an appealing solution for those who often have limited cash flow, but that lack of cash flow can make it all too easy to struggle to pay off that debt.
Student credit card ownership
Sallie Mae estimates that 57 percent of college students have a credit card, and the types of credit cards they have can vary greatly.
- 17 percent have a card with a cosigner
- 25 percent are authorized users on a parent’s card
- 28 percent have secured credit cards
- 64 percent have an independent card in their own name
