As college students find their way back to campuses across the country, one can only imagine the cost involved with getting a higher education. In the years past, one of the major items that could be found on almost every college student’s back-to-school list would be a student credit card for making payments and purchases that every student incurs. During this time, credit cards not only allowed one to gain financial independence, but it also allowed a way for students to start building a credit history. In this day and age, credit cards are still the best way to do just that, and with some credit card issuers giving great back-to-school deals college students could get rewarded well beyond the norm.

One issuer that is giving students extra perks for using their credit card both on and off campus is Citi Bank. In a promotion that started in July lasting throughout the month of September, new cardholders have the ability to receive ten times the amount of points generally earned with purchases. In addition, students can receive a great introductory interest rate on both purchases and balance transfers if they qualify.

In most cases the cost a college student incurs goes beyond the campus and well into the student’s social life. This is where credit card issuers such as Citi Bank can be utilized by getting rewarded for the cost that the average college student accrues.

As school has started for many college students and is about to start for millions of others, one can only imagine how the impending CARD Act will affect credit card issuers’ marketing campaigns on these campuses for the Fall 2009 semester. For these issuers, this will be the last semester that certain practices can be used and incentives can be given to lure college students to apply for their credit cards when thinking about starting the long road of credit building.

As many issuers gear up for the major changes on campus due to the Credit Card Accountability, Responsibility and Disclosure Act, there has not been much mention by credit card issuers concerning their current and future approach toward college students.  Due to this, there are many experts that believe compliance with the new law will be too expensive and difficult with the end result leading to discontinuing to market cards to students.

So will the CARD Act cause credit card issuers to abandon those that are under twenty one altogether? I don’t believe they will and here is why. In many accounts and purposes those under twenty one are the future revenue for the credit card issuer. There is no other time to start a relationship with the consumer than early on because if all goes well they may be a customer for life.

I can still remember those days. Walking back from class and seeing signs and leaflets stating “Get a Free Large Pizza”. These signs and leaflets were always popping up on what seemed to be on Fridays, and thinking about it now was probably a great strategy to get about any college student thinking about it.

As you probably already know, the pizza was not exactly “free”. To get your pizza all you had to do was fill out a credit card application, and get quizzed by people trying to determine if the information that you wrote down was yours or not. Well needless to say, I went home that day with a large pizza.

Well with the Card Accountability, Responsibility and Disclosure Act, there will be a couple of changes to the way credit card issuers are able market to student and young adults on and off campus. For those that are on campus, this act includes requirements that card issuers and universities disclose agreements with respect to the marketing or distribution of credit cards to students. For those young consumers that may or may not be on campus the act still requires some things that may protect them for the time being.

Some requirements include:

• Signature of parent/guardian, or someone willing to take financial responsibility for debt
• Information indicating means for paying back any credit extended
• Proof that individual has completed certified courses 

What have been some of the things that you were offered to get a credit card? Do freebies or discounts help you determine whether you get a card or not?

With the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act signed and set to take effect in February 2010, there is one group of people that will have to re-adjust how they will be able to obtain a credit card. Under the new law, those that are under the age of 21 will be required to have a co-signer, pass a financial literacy course, or show that they have the ability to repay amounts that are borrowed. With these guidelines in place there is only one solution that seems to be best for those under 21, a secured credit card.

Secured credit cards for the most part are like any other credit card. The difference is that a secured credit card is one in which the consumers open a card account with a security deposit equal to their credit limit. This deposit, in many accounts could be termed as “proof” that the cardholder has the ability to repay the amount that is borrowed. Also with a secured card there is no need for a cosigner because in the case of someone defaulting, the credit card issuer simply takes the security deposit linked with the card.

Although at the moment secured cards are marketed toward those consumers with bad or not credit history, I do see this changing as we get closer to the beginning of next year. I think that card issuers will see this as an avenue to reach those consumers (under 21) who know that they need credit and that their credit history will affect interest rates in their future.