Credit Card Companies Use Gift Tactics

990 WordsOct 26, 20154 Pages
companies assertively targets college students because they are expected to have a higher than average power for earning, which make them a perfect targeted market. Credit card companies use gift tactics by offering the latest iPod, an exotic vacation, a computer, frequent flyer miles or an initial low to zero percent interest rate and even cash to entice college students to apply for credit cards. In fact, many students only get a credit card initially because of these incentives, but soon become accustomed to the convenience of just pulling out a card to pay for purchase due to want and not because of need. As Kamenetz (2006) stated, “Students are living in the present at the expense of their future” (p.13) (Gresnick, 2006). Sallie Mae, a student loan provider, stated that more than half of college students in 2013 used debit cards (approximately 77%); however, students still manage to run up credit card debt. The average balance was $499 for college students in 2013 with sophomore students carrying the lowest average balance. It is important to note that the type of school or the region where college students attend may also affect the average balance. The average debt for students attending a four-year private college in 2013 averaged about $737 compared to $441 for students attending a four-year public and $409 for students that attended a two-year school.The average credit card balance of students by region includes the Midwest with the highest at $743, the South
Open Document