My Loans Consolidated

Until about 10 years ago, credit card companies in Indonesia were able to issue a new credit card in people’s names taken from a database and mailed it to them. Back in the 1960′s, it was legal in America to do so as well. College students have always been targets by credit companies and back in that time, they were able to issue new cards under a student’s name and mailed it to them.

Although this has been banned by the Congress as they began regulating the credit card industry, credit card companies are still aggressively chasing after new young customers like first year college students. Today, the average undergraduate students have a balance of over $3,000 in their credit card. This is the highest record since 1998.

Colleges and universities are not doing anything against this aggression either because credit card companies are generating income for them by renting space on their campuses to set up tables for their credit card offers. By offering coupons or CD’s or even cash for free, they entice students to apply for a credit card right there on the spot.

Getting these students to decide right there, right then to get a credit card is like a trap that these companies are setting up. This will prevent the students from taking their time to read the fine print on their offers. It will also prevent them from doing their due diligence and compare credit cards. Most of these kinds of credit cards come with annual fees that is charged to the new card even before the student makes their first purchase with it. Many charge only low interest rates for an introductory period. But as soon as this period is over, the rates are on the high end compared to other credit cards.

The Congress is being pushed to enact legislation that will make it more difficult for credit card companies to issue a credit card to anyone under the age of 21. They are already considering regulations to end the many deceptive ways that credit card companies are practicing to entice students. This is in addition to new regulations already passed by Federal Regulators and set to become effective in July 2010.

Popularity: 2% [?]