Responsible Solicitations for Student Credit Cards
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by: barrywaters
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Word Count: 449
When students begin their studies at a university, they are quickly greeted by give away and rewards if they apply for student credit cards. Representatives trying to convince kids to apply for student credit cards have become more prevalent over the years. Young adults in college are a perfect market. Many are on their own for the first time and long for the independence and freedom of adulthood. Student credit cards may seem like the perfect ticket to financial freedom. Some lawmakers, student groups and university administrations are taking steps to reel in marketing behaviors they feel are predatory to financially inexperienced students. Rutgers University banned companies from marketing student credit cards on its campus several years ago. Other campuses may see changes soon, as many state legislatures are cracking down on practices regarding the marketing of student credit cards. Legislatures in four states have already established bills to tamper some company practices around student credit cards on campuses in their states. The New Jersey legislature recently began its efforts to dampen aggressive practices around student credit cards, as well. A bill was introduced that requires companies to provide educational programs for students prior to any student credit cards being issued. Those financial courses would give new applicants background on what various rates and fees actually mean, what happens when balances are not paid, how debt is accrued and how debt and delinquencies affect credit history. The bill also limits sales gimmicks, so students are not wooed into applying for credit cards just to get the free pizza or shirt. Lawmakers believe restrictions in the bill will help protect students from making poor financial decisions that could have long term consequences. They want the students at its universities to understand the responsibility they take on when they open a credit card account.
The country is coming to terms with the economic downturn and consumers are restructuring their financial goals. The years of a booming real estate market and economy left some feeling they could spend freely without consequence. As a result, some are now reworking their budgets and striving to eliminate credit card debt. State lawmakers and college administrators who are trying to restrict marketing practices regarding student credit cards are hoping they can keep young people from establishing bad credit habits early on. If students learn to make sound decisions regarding their finances and spending habits in college, they will carry that with them into adulthood. Topics of interest Credit cards | Credit card applications | Credit card applications | Bad credit credit cards | Credit cards for bad credit |
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