Credit Card Companies targeting College Students on Campuses

Moreover, almost a third of the 76% of current college students have been offered free gifts in order to sign up for the credit cards. Consequently, this has led to nearly a dozen of states restricting credit card marketing to students within campuses. Despite such moves, credit companies have persistently remained aggressive in signing up students within campuses for credit cards (Chu). This is despite the common view credit companies should not target college students on their campuses while marketing credit cards.
Arguments against Marketing of Credit Cards to Students within Campuses
Marketing of credit cards to students within campuses is against provisions of Federal Law on credit cards for college students. According to Chu, Federal Law on credit card categorically outlines that no bank or financial lending institution should give credit card to students and young adults of below 21 years who have no steady income or cosigner. This federal law prohibition provides a framework within which credit cards should be given that is, to persons above 21 years with a steady income. Unfortunately, most undergraduates after finishing school end up with enormous credit, which may eventually lead to bankruptcy and at the verge of financial crisis. Based on statistics obtained by the US Public Interest Research Group, graduating college students leave school with approximately $ 4,000 in debts (Uspirg.org). The US Public Interest Research Group goes ahead to establish that 56% of undergraduates obtain their first credit cards at the age of 18 years, which is a period when someone cannot make informed decisions (Uspirg.org). What’s more, by the time such a student is graduating, he or she will be in possession of four or more credit cards. Credit companies have been forced to enter into unethical business practices in order to entice and persuade college students to sign up for credit cards. College students are vulnerable to cheap offers such as T-shirts, pizzas, and other free gifts. Financial institution clearly understands the vulnerability of college students, which they unethically capitalize on to convince them to sign up for credit cards (Chu). Convincing and enticing of college students do not only include gifts but also dwell in short-lived offers such as lower interest rates and other deceptive marketing practices. For instance, in 2007 the state attorney charged Citi Bank and its marketing counterpart, Elite Marketing with application of deceptive marketing practices to entice students in order to sign up for credit cards. Taking advantage of consumer’s situation and vulnerability is an unethical practice that may only end up ruining and organization. The credit companies responsible for marketing of credit cards to students should be prohibited from taking advantage of college students’ vulnerability to cheap offers. College students other than being vulnerable to cheap offers are new, inexperienced, and uninformed adequately regarding credit cards and in the market place. In this regard, marketing credit cards with only advantages will make students accept such offers without understanding how it works and demerits (Dickler). As a result, many of them end up incurring hefty sums of debts, which trails back to their parents. Placing more burdens to parents in addition to their normal responsibilities of paying tuition fee and caring for students is unfair and uncalled for especially in the contemporary business world where living standards have incrementally increased. Statistics by US Public Interest Research Group clearly indicates that 61% of students fully depend on their parents for fee and all other educational costs, with 40% and 38%