Why Do Credit Card Companies Target College Students?
Credit card companies are constantly sending offers for people to apply for credit cards. College students are among the most widely targeted for these types of offers. Here are six reasons credit card companies often target college students.
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Tight Budgets
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College students are often on tight budgets and need an extra sense of financial security for unexpected expenses. For many people, the option of a credit card is used only as it is needed.
Building Credit
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Building a credit history is one of the best things college students can do to ensure eligibility for credit cards and other types of loans in the future. Buying items using a credit card and making payments on time each month helps to build a credit score.
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Impulse Buying
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College students--especially freshmen--are often impulse buyers. Sometimes these impulses strike during tight financial times. Credit cards can satisfy the buying urge even if the college student doesn't have money to make a major purchase.
Interest Rates
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Sometimes college students fall behind in their payments, which allows the credit card company to increase interest rates, often to the dismay of the borrower.
Tuition and Fees
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Many college freshmen need money for tuition, books and fees. Sometimes these students may not qualify for financial assistance or haven't yet been approved for student loans. Credit cards bail them out of this temporary tight spot until they can be approved for financial aid or student loans.
College Students Are Image Conscious
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Whether buying clothes or shoes for a date, or clothing for school-related functions, college students are known to be very image conscious. Clothing stores with credit card programs often target college-aged students so that the student can maintain his or her image consciousness.
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