Credit Card Companies Targeting College Students
Since student loan debt is being generated as pupils attend school, credit card companies should not be allowed to market to college campuses. College students are constantly being marketed to by credit card companies however they do not always have the ability to pay back the money that is charged due to not having stable employment while they are enrolled in school. Credit card companies use different marketing techniques to lure students in and make applying for credit very easy for them.
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Credit card companies should not be allowed to market on college campuses and US Congress should implement a law or policy to restrict them from doing this across the country. Some states have already implemented policies such as these. Credit card companies know that college students are their prime prospects. The marketing tactics credit card companies use to entice students prove that these companies truly understand their demographic. Representatives of the credit card companies are sent to these campuses to harass students into filling out applications for their products and services.
Their representatives are trained not to take “no” for an answer. The students are lured to the companies’ kiosks by the promise of free gifts. These gifts include Frisbees, t-shirts, and even iPods. With kiosks popping up all over the campus, the companies make it hard for students to say no to the pressure they apply. With all of the exposure that the credit card companies have on college campuses, they make it hard for a student to remember that they are there for the purpose of obtaining a college degree.
With most students already accruing student loan debt, credit card debt is the last thing that they need to be worried about. College students do not have a monthly income or secured job that can help them to pay all of their bills. College students rely on their parents’ income to pay for minor expenses during the college years. If they do have a part-time job, they use the income to cover utility bills and necessities. Graduate students have too many issues to worry about like school loans to pay back, getting a job in their field of study, moving out from their parent’s home, etc.
The last thing students need to worry about is a credit card. College students do not manage credit wisely: credit card purposes were created to be used by consumers to build credit, emergencies, and to acquire items difficult to pay for on a daily basis. Unfortunately, the lack of credit knowledge may push college students to max out their credit cards in daily purchases, so at the time of an emergency or time to pay tuition, they are obligated to open more credit card lines and to continue spending beyond their means.
No credit history means high interest rates and longer monthly payments, a credit card Annual Percentage Rate is 18% for people without credit history, for a college student with a credit line of $800, each month the student will be paying interest fees only because of the high interest that has been charged to the purchases that have been made. This results in more months to finish paying the credit card debt. This is one sequence of not paying attention to the fine print at the bottom of a credit card application.
Although credit cards are a great thing to have, especially if you are a college student on a fixed income, there are many different consequences of the actions of spending. Most college students will look at a credit card as “free money” which they do not feel they will have to pay back right away. If payments are not made on time, the credit company can then charge a large amount of interest to the cardholder which will continue to accrue over time.
This can cause serious damage to a credit report and credit score. Although most students are young and not concerned about their credit score, they should not be marketed to in order to avoid mistakes that are made that can affect their future such as filing bankruptcy at a young age. In conclusion, the facts state that in order for students to avoid unnecessary debt, credit card companies should be banned from marketing on college campuses, in the same manner that tobacco and alcohol companies are.