Characteristics of Campus Fair Cards

In March, the U.S. PIRG Education Fund released The Campus Credit Card Trap,[i] reporting the findings of a major survey of student attitudes toward the marketing of credit cards on college campuses. It analyzed how students pay for their education, how many use and how they use their credit cards and, finally, their attitudes toward credit card marketing on campus and whether or not they support principles to rein in credit card marketing on campus. That report documented that while many young consumers manage their credit cards well, others do not. The report found that many students face difficulty paying their credit card bills, and that a significant number have paid late or over-the-limit fees or even had a delinquent card closed by the lender. The study also detailed a number of investigations by state Attorneys General[ii] and newspapers[iii] into credit card practices on campus.

Young people, including traditionally-aged college students, have certain financial characteristics that make them different from other adult targets of the credit card industry. This follow-up paper outlines the recommended characteristics (terms and conditions) that credit cards marketed to college students should have to be considered “fair” to college students and other young people. Such fair cards should also be marketed subject to all of the PIRG marketing principles and be accompanied by independent financial education and literacy programs.