CREDIT CARD COMPANIES SHOULD NOT MARKET TO COLLEGES STUDENTS

Credit Card Companies Should Not Market To Colleges Students

Introduction / Thesis Statement

The question of whether the credit card companies should focus on students is equivalent of asking if the bars should be directed to recovering alcoholics. The simple answer is 'No', absolutely not. Credit cards are a great concept, but in the end bring financial ruin to many people because they do not use it correctly. Too many people get a credit card and then discover that it has exhausted within twelve months. Then for the rest of his life, you end up paying the interests for a long period. Managing money like that is not a good way. (Palmer, 2008)

Description

The reason credit card companies target students is because they target people who are quite ignorant of how the world of finance works, and at the same time have a clear need for your product. Most students have never had a credit card for themselves. They might are experiencing it for the first time in a world of self-sufficiency and managing of a separate budget for the first time. (Lazarony, 2009)

The reality is that throughout the transformation of the students from teen to a young man, they have a feeling of insecurity at times, and the easiest way to survive this insecurity is to reach to a safety nest, entering safety nest of credit card. If a student has difficulty in fighting to make ends meet, it's much easier for them to get a credit card, as compared to pinch pennies and limit their budget. (Hall, 2008)

The problem with this can be since they are using it for the first time; they would be ignorant of how it works. Surely, everyone knows that the process is simple, by spending a credit card and pay later with interest. But in the world of finance, you soon realize how some people have a working understanding of credit lines. For example, few consumers between the ages of 40 and 50 years may know the derivation of the interest rate. Ask any person on the street and you will find that almost no one can explain this, let alone the prospective student. (Block, 2008)

A credit card works in a form of revolving credit line. A limit is determined for up to how much a customer can be charged. Then on the basis of what is ...