To Your Credit

Despite fluctuating federal credit-card controls, college students--especially graduating seniors--may find it easier to get credit cards than the general public does.

Because college students usually charge only small items and pay their bills promptly, they're "excellent credit customers," says George Stealy of Sears, Roebuck & Company.

Art Clark, a vice-president of the card division at American Express, agrees. "For graduating seniors, our application requirements are less stringent than our ordinary standards," he says. Why? Graduating seniors are more likely to find better-paying jobs, and thus are better credit risks.

Underclassmen without impressive salaries, however, carry little clout with the nationally accepted credit-card companies. Yet some retail stores (Sears, for example) don't have minimum-income requirements. "The only real provision is an adequate income--not necessarily a job--to make payments," Stealy says.

Once you have a credit card, the most effective way to fight inflation with it is to charge new purchases immediately after the billing date on the monthly statement. Charged items won't appear on your account until the next billing date--about 30 days later.

After you receive the monthly bill, you have up to 25 days to pay it before interest is added. Thus, almost two interest-free months elapse before you have to pay for your purchases.

Before you congratulate yourself for being such a savvy shopper, one caution: Always pay monthly bills in full to avoid interest charges.

But what if your credit-card application is refused? You have the right to know specifically why you were turned down. If you feel you have been unfairly rejected, ask the creditor first. The regional offices of the Federal Trade Commission may also be able to help.