Credit Card Marketing on College Campus College

Credit Card Marketing on College Campus

College students are the perfect target for credit card companies looking to hook people into the world of revolving credit. They are the perfect candidate for such an ordeal since college students are at an age where they are transitioning from being teenagers living and depending on their parents, to becoming young adults who are going to live on their own, and most likely on the same campus where they attend school. Marketing in this environment, especially when freebies and great superficial incentives are given to a population that is looking at getting an immediate purchase without any immediate money down, makes it easier on these companies to get the right type of person wrapped into their world pretty quickly (Chu, 2008). But is this always the best option? Should credit card companies be marketing at a population that does not necessarily have the immediate income to repay these credit card loans? From a strictly economic perspective, and looking at this issue from a credit card companies financial incentive point-of-view, yes, credit card companies should be marketing on college campuses because if they want to reel people in and have them indebted to them for a good chunk of their lives, then continuing marketing campaigns on a college campus would be the ideal thing to do (Glater, 2008).

College students are at a point in their lives where they want to exercise their rights of independence and their belief that they are adults. Giving them a credit card at a time where a student seems to be most vulnerable is actually the best way for credit companies to assure that these students are indebted to them for a very long time (Lazarony, 2009). Marketing on campus gives students the opportunity to just sign up for a credit card that they might not be ready for, but are excited and enthusiastic to use. Credit card companies offering freebies such as coupons for free pizza, gift certificates to stores and restaurants, and even simple things such as tee shirts and frisbees, increase the chance of them getting to sign up (Glater, 2008). A small investment into a $4 tee shirt, could mean potentially thousands of dollars in debt, not to even begin to mention the fees and charges that also add up in the end. It is a way to hook people at their most vulnerable state, for a relatively small price. Students at this age are not making rational decisions because of their excitement to just be receiving a credit card in the first place. They see it as a mark of independence and a milestone in their journey of becoming an adult. Marketing at college campuses is a gold mine for credit card companies looking to expand their ever growing business.

Even if the students themselves end up not being able to make the payments themselves, most parents usually step in to take care of the remainder of the debt (Mui, 2010). On average, undergradute students end up graduating with over $2,000 of credit card debt, while graduate students end up graduating with over $8,000, and that is not counting what was already paid off while they were enrolled in school (Mui, 2010). In the end credit card companies will get their debt paid for one way or another. They are going to get their money, which at the end of the day, is all that really matters. Advertising and marketing at a college campus assures credit card companies that their clients will always have a safety net that will pay for their expenses. Even if the student does not make the necessary payments to get rid of the debt, they will always have someone backing them up in the end, and if they do not, the fees will continue to add up and the interest will continue to accrue, so credit card companies will still be getting their money a couple times over. But from the financial perspective of the student. Having credit card companies on campus will allow students to be able to build up their credit, whom at many times are non-existent had it not been for the credit cards that they held while in college (Glater, 2010). Having the opportunity to charge something on their credit card will allow them to improve their credit score which will be needed for future larger purchases such as that of a home or car. Because most parents tend to keep up with the payments that the students cannot make, they are helping them improve their credit for future endeavors.

Allowing credit card companies to market at schools also gives students the opportunity to buy what ever it is that they may want, without having to wait to get it. Books that seem to be getting more expensive everyday and school supplies that are needed in order to get through classes, can all be purchased with a credit card, lending an extra convenience to the student (Chu, 2008). It alleviates the pressure on the parents to have to come up with money every time that their child needs something or has a last minute expense. College students love to spend money on food, and they love to go out and enjoy themselves. Having a credit card company that will allow them to do that without having to worry about having to pay for something right away will allow them to be worry free for the moment. Parents will also be feel relief in knowing that whatever emergency expense that their child who lives away from home might have, they will be covered by the immediate funding available through credit cards. Credit card companies marketing on college campuses are actually providing some relief for the parents and the students who will eventually need these cards to be able to fund their college experience (Lazarony, 2009). College is not just about the education that one attains, it also becomes about the fun experiences that one chooses to participate in and is actually something that can be remembered years later. Allowing credit card companies to market on college campuses will allow students to fully enjoy their college endeavor.