Credit Cards on Campuses
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by: barrywaters
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Word Count: 464
Credit cards on university campuses have become as common as college sweatshirts. Walk on any campus and you will see representatives from various companies giving away shirts, mugs and applications for credit cards. College kids are an effortless target. Many are away from home for the first time and are asserting their independence. While some may already have credit cards through their parents, the allure of having their own cards is extremely tempting.
Banks have a tradition on many campuses. At a campus in Michigan, Bank of America has a relationship with the college that grants it the right to use student enrollment lists. The bank gives the college money for any new coeds who get credit cards with them. Contracts like these often offer universities even more money, if their students carry balances on those credit cards. Although these contracts benefit both the university and the credit card company, they have the potential to exploit young people who many not know the consequences of poor spending decisions. Recently, student organizations have been speaking out against the aggressive marketing practices that could harm students in the long run. The relationship between banks and universities also came under a microscope when hearings were held on Capitol Hill last June to scrutinize campus marketing practices.
Banks that have contracts with universities contend that they are providing a valuable resource for students. Student credit cards offer an opportunity for students to develop a relationship with a bank and build a foundation for their credit history. Many banks that offer student credit cards provide courses for those customers on how to responsibly use a credit card, the consequences of not paying an outstanding balance and financial planning. Additionally, they say the credit cards offered to students have lower limits and more restrictions than those marketed to graduates. Some banks are even giving students the option to open debit cards in lieu of credit cards. Academic institutions say that any contracts they have with banks are undergone lawfully, benefit student programs and are in the best interest of students. In spite of those claims, there has been a movement to rein in the right to use student data when universities establish new bank relationships.
Like everyone else, students are feeling the affects of the economic downturn. Many students apply for credit cards to help defray bills and other costs. It appears that banks and universities will continue to have marketing contracts and relationships, albeit at less aggressive levels than in the past. Hopefully students are learning valuable lessons from the credit crises and will approach credit card solicitations with a discerning eye.
Topics of interest Credit cards for bad credit --
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More sites about credit cards, read www.getsmart.com/credit-cards.
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