Credit card companies love to extend credit to college students, especially those just out of high school. Ads for credit cards line campus bulletin boards, flash across commercial Web sites for students, and get stuffed into shopping bags at college bookstores. Why do the companies market their product so vigorously to a population that lacks a substantial credit history and often has no steady source of income? The answer is that significant profits can be earned through high interest rates and assorted penalties and fees. By granting college students liberal lending arrangements, credit card companies often hook them on a cycle of spending that can ultimately lead to financial ruin. Whereas banks require applicants for a loan to demonstrate a good credit history and some evidence of an income flow, credit card companies make no such demands on students. On campus, students find themselves bombarded with offers of preapproved cards—and not just on flyers pinned to bulletin boards. Many campuses allow credit card vendors to solicit applications during orientation week. In addition to offering preapproved cards, these vendors often give away T-shirts or CDs to entice students to apply. Students are bombarded on the Web as well. Sites with heavy student traffic are emblazoned with banner ads like this one: “To get a credit card, you need to establish credit. To establish credit, you need a credit card. Stop the vicious cycle! Apply for our student MasterCard.” Credit card companies often entice students with low “teaser” interest rates of 13% and later raise those rates to 18% or even higher. Others charge high rates up front, trusting that students won’t read the fine print. Some young people don’t think about the cost of interest, let alone the cost of interest compounding month after month. That back-to-school wardrobe can get pretty expensive at 17.9%