Rochester, N.Y. - The hardest thing 20-year-old Jennifer Lara thought she'd face in college was acing her exams and getting a good G-P-A.Instead it's her credit score.
"It's been very difficult. I've been trying for awhile now because I'm trying to build my credit maybe if I need a car in the future but I've been denied a couple times,” Lara said.
"It's a catch 22,” said Dr. Bob Manning, with the Responsible Debt Relief Institute.
Manning says in the past, credit card companies handed out cards to students, knowing parents would be there to bail their kids out if they overspent.
"Now with this recession, not only is there the assumption that parents can't afford to pay off these debts but there's also concern that the parents are going to use some the credit that the students are getting at school to pay some of their bills,” Manning said.
Making it even harder for working students trying to build credit, especially if you have student loans.
"The student loans are hurting their ability to pay the minimum payment on their credit cards. The irony of it is it's much easier in the past to get a credit card if you never had a job and were a full time student than when you graduated and had the ability to pay your loans,” said Manning.
There are some things Dr. Manning suggests for young people trying to build credit.
He says opening cards with retail stores may help.
While interest rates may be high, charge them once or twice and pay the charge off early or on time.
