Student Credit Card’s New Focus: Parents
| February 28, 2010 |
With the new law in place putting requirements on the ability to get a credit card for those under the age of 21, issuers are now getting creative when it comes to reaching out to students. In the past while they could simply set up booths in and around campus and give incentives for signing up for a card, in today’s environment it is the parents that are being highly targeted because they are likely the ones that will determine whether or not their children will get a card (as they will probably be the co-signers).
With one of the restrictions requiring a co-signer it now looks as though card issuers are putting their focus on the parents more than the student themselves. On many accounts, issuers are targeting those whom already have existing accounts with them and are sending promotional material. Others have simply taken the approach of sending marketing material to the students home addressed to the parents in an effort or utilizing the direct mail approach that has worked for credit card issuers for years.
When it comes to student credit cards, stakes are high when it comes to the issuers. On many accounts, issuers focus on students for many several reasons. One of the main reasons is the fact that students are future. Traditionally college students generate some of the highest profits due to the fact that most often they do not pay their balances off in full each month. Not only that, but student tend to hold on to their first credit card longer than any other because it is most likely their longest standing account showing credit.
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