iving Credit Where Cre~it is Due
Early man survived the Stone and Bronze Ages; people of medieval times lived in the Age of Iron. Modern man lives in the "Age of P lastic." Tiny polystyrene cards, no larger than an ace of spades, have become important factors in student lives. Why pay now when you can pay later? Credit cards used to be the domain of the upper class or solidly established consumer. Now, with the help of strategic targeting by issuing companies, a whole new group has opened its financial eyes to the wonders of credit. Jim Blan d, vice president of marketing for American Express, said his company has been actively persuing the student market. ''American Express was the first major card company to specifically offer the ability to charge to students, and we've been doing so for quite a few years," he said. "Students are the most likely group to have high income in the future and therefore use credit," said Bland. "We've also found college-age students to be good credit risks, since they obtain the
cards to build a good record." Other companies have seen the college market as an extension of their usual card-using population. "We have not been specifically going after the college student as a credit card user," said Guy Eberhart, marketing vice president for Sears. "We've been pursuing increased consumer awareness across the board.'' Eberhart also stressed the importance of students as first-time card carriers. "Many times students have never had a credit card, which makes kind of a catch-22 when trying to get credit. The best way to get a credit card, we think, is through a retail store, and Sears is trying to offer this possibility to all consumers," he said. Students said they like having the ability to say "charge-it," but realize the dangers of uncontrolled credit. "It's a good idea to build up a good credit history now, while you're still in school," said Amy Scholes. "When you get out into the 'real world,' you're already established credit-wise."
But students understand the risk involved if they get in over their heads, she said. So how can students get credit cards, when they don't have a regular income or previous financial history? Meredith Naples, of the College Credit Card Corporation, recommends several plans of attack. "Obtain an extra card as part of an existing account of your parent's or, even better, get a card through a co-signer, such as what American Express uses. Also, many card companies are making special arrangements for college students to obtain cards, so check their displays," he said. Jeffrey Shepard, a student bankcard holder, says the creditors and users benifit from the availablity of cards. "There's a big market for the companies with students," he said. "It could be a big risk on their part, but they seem to be willing to take it for the possible big returns. Students just have to be careful not to overdo it and try to pay off 'maxxed' out cards with student loans."
It's a good idea as long as students understand the risks. Amy Scholes It's nice for us to be able to get them and show that students are responsible.
David Vinson
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Right on Target When card companies decided to pursue the student market, they brought out fast-paced, graphically designed displays to advertise the avallablly and ease of obtaining c redit. (Wendt)
Credit
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