credit card applications

Credit cards on university campuses have become as common as college sweatshirts. Students are solicited to apply for credit cards frequently, as they pass tables with free pizza and incentives if they sign up. College kids are an effortless target. Many are away from home for the first time and are asserting their independence. The idea of having credit cards in their name can seem like the ticket to financial freedom. University and banks have long standing relationships. At a campus in Michigan, Bank of America has a relationship with the college that grants it the right to use student enrollment lists. The bank gives the college money for any new coeds who get credit cards with them. Contracts like these often offer universities even more money, if their students carry balances on those credit cards. Although these contracts benefit both the university and the credit card company, they have the potential to exploit young people who many not know the consequences of poor spending decisions. Recently, student organizations have been speaking out against the aggressive marketing practices that could harm students in the long run. Even the politicians in Congress have been examining the contracts between academic institutions and banks, as hearings were held about the issue last summer. Banks that have contracts with universities contend that they are providing a valuable resource for students. Student credit cards offer an opportunity for students to develop a relationship with a bank and build a foundation for their credit history. Banks offer seminars on responsible spending, budgeting and paying off balances on credit cards. Additionally, they say the credit cards offered to students have lower limits and more restrictions than those marketed to graduates. Students on many campuses can sometimes even choose between having debit cards or credit cards. Universities claim their relationships with banks violate no laws and bring in resources that are used for valuable programs and scholarships. In spite of those claims, there has been a movement to rein in the right to use student data when universities establish new bank relationships. The current tough financial times are hitting students too. Many students apply for credit cards to help defray bills and other costs. The presence of banks on campuses will remain a part of college life, but it appears that it will be a less exploitive presence than it has historically been. Hopefully students are learning valuable lessons from the credit crises and will approach credit card solicitations with a discerning eye. .