Why Do Credit Card Companies Target Students
The goal of credit card companies
is to increase their sales through marketing a large variety of financial services. One of their venues for gaining more profit is credit cards that appeal to the student population
. You may wonder what the reason is, but in fact there are many. Students
are often quite emotional, while socializing almost always involves a good amount of cash. These are just two of the aspects credit companies focus on when developing their marketing strategies.
Students have intense social life
are involved in a variety of relationships and social networks, from family and school friends, to college friends, partners, colleagues at work, and strangers at the bar. Presentations, exam sessions, and other college activities add extra pressure to the daily activities of college students. Credit card companies take into account these factors when appealing to college students. Their advertisements try to cover as many areas of the student life as possible: cash back bonuses changing for travel (to your sweet home or beloved), gas (for the same purpose), department stores, restaurants, and even extra toppings for your favorite pizza.
It is also true that students have extra expenses: they have to purchase textbooks and books, attend seminars and conferences at different locations, etc. These expenses require fresh cash and the easiest way to pay for them is by using a credit card
Students Love to Shop
College students, especially girls, love to spend their free time in the mall. There are many social events to show off the new top or pair of Gucci glasses they find in the mall. However, the majority of parents will not sponsor the shopping frenzies of their grown-up children. Credit cards appeal to students by convincing them that everything is a reach away and no cash is required. High interest rates and horrendous penalty fees for late payments are some of the traps that college shopping aficionados may fall into.
Students Want to Pay Off Debt Now
Credit card companies arenít afraid that students wonít pay off their debt. Usually, college students canít handle the burden of debt
. Moreover, if taking a part time job cannot help repay the debt
, parents are usually out there to help. Students close to graduation are expected to find jobs and service their debts. Furthermore, college chaps have to boost their credit scores so that future creditors and employers consider them worthy of approval. For all these reasons, credit card companies are convinced that no matter what the circumstances are, students will pay off their debt
at one point or another.
A Word of Advice for Parents
Credit card companies employ aggressive strategies to appeal to college students. Parents have to respond to this challenge by teaching them how to use credit in a responsible manner and manage finances. Parents should emphasize on the negative effects of maxing out credit cards and accumulating debt. In addition, it is a wise idea to sign them up for a seminar on the subject.