Plastic Debt

Plastic Debt

Com/156

September 19, 2010

Renee Gal Primack

Plastic Debt

Limiting access on college campuses and increasing financial education for students will do much to balance the marketing tactics of credit card companies of targeting the young and inexperienced. Although in these economic times many students rely on credit cards for basic needs, many new college students fall into the trap of acquiring credit cards before they realize the dangers credit can present to their financial future. In response to students incurring heavy debt, the government is imposing new laws that limit marketing credit cards on college campuses. Along with new laws, legislators are suggesting that colleges start offering credit education for first time college students. By limiting the marketing tactics of credit card companies and offering credit education, students will have the opportunity to learn how to use credit to their advantage, rather than causing themselves long-term debt.

Credit card companies target the young and inexperienced, offering students their first chance at the grown-up world of credit. As a result with no experience in this world students can often finish school with long-term debt. Credit card marketers, realizing they had an untapped market of students on college campuses, have resorted to such tactics as setting up vendor tables on campuses and offering gifts to students to sign up. Many part-time and unemployed college students rely on their parents for support, tuition, and spending money. Marketing strategies include no standard qualifying practices such as source of income, debt to income ratio, and credit score normally practiced for granting credit. Basically, students with no credit history and no source of income other than their parents are granted credit strictly because they are college students. Another tactic used by marketers is striking deals with college administrations for lists of students’ personal information...