Credit Cards and College Students

Throughout the life of a child, parents have dreams of their children succeeding in ways they never did, and often times the child dreams of living an easier life than his or her parents. As early as birth, some parents begin the financial planning stages to strategize how to send their young adults to college. Some of those strategies include college savings accounts, student loans, grants, and scholarships, but not many, if any, consider the use of credit cards. For most parents the thought of educating their young adults would be ideal, however may consider it to be a little more than one could handle at such a young age in the first year of college. The majority of first year college students are still in some form or fashion supported by his or her parents and the discussion of credit cards would not be the first lesson in mind. It is unimaginable how anyone who has no income to report and repay the debt may possibly obtain approval for a credit card, but believe it or not, it happens. Banks may offer cards to young consumers without verifying income or credit reports or other ability to re-pay, relying solely or largely on the consumer’s status as a student to quality them. Even though credit cards build credit history, credit card companies should not be on campus marketing to college students because of the unfair practices.

As credit card companies aggressively continue marketing to college campuses, the unfair solicitation practices used are luring and exploiting naïve students. The unfair solicitation practices may include offers such as gifts, food, and easy way to buy clothes or pay for spring break. According to Parks, “students everywhere will be offered free T-shirts, water bottles, long distance, pizza discounts, Frisbees, backpacks, hats, pens--you name it--all in the name of marketing credit cards.” Credit card companies use the strategy of building credit history and customer loyalty at a young age. The credit card company’s only...