- Seventy-six percent of undergraduates in 2004 began the school year with credit cards. This is an 8% decrease from the 83% with cards reported in 2001.
- The average outstanding balance on undergraduate credit cards was $2,169, a reduction of 7% from 2001 when the average balance was $2,327, and the lowest average balance reported since 1998.
- More than half the undergraduates with credit cards carried balances lower than $1,000.
- Undergraduates reported freshman year as the most popular time for getting credit cards, with 56% reporting having obtained their first card at age 18.
- As students progress through school, credit card usage swells. Ninety-one percent of final year students have a credit card compared to 42% of freshmen. Fifty-six percent of final year students carry four or more cards while only 15% of freshmen carry that many. Final year students carry an average balance of $2,864 while freshmen carry an average balance of $1,585.
- Undergraduates reported direct mail solicitation as the primary source for selecting a credit card vendor. The second most common source was referral from parents.
- Seventy-four percent of undergraduates reported using credit cards for school supplies (paper, notebooks, etc.), the number one reported use of cards. The second most common usage of credit cards reported by undergraduates was a tie between textbooks and food, with 71% reporting these as charged expenses. Slightly less than 24% reported using credit cards for tuition.
- Twenty-one percent of undergraduates with credit cards reported that they pay off all cards each month; 44% say they make more than the minimum payment but generally carry forward a balance; 11% say they make less than the minimum required payment each month.
- Students estimating their outstanding credit card balances in a survey reported lower average balances than the average credit card balance outstanding at the credit bureaus.
- Students from the Northeast region had the lowest outstanding average balances while students from the Midwest had the highest balances.
Download the 2004 Credit Card Study (PDF, 76KB).