College Credit Cardholders |
Credit Cards Education - a New Win-Win Solution
A recent public opinion poll indicates that most credit card holders are dissatisfied with credit companies' policies, criticizing them for dishonesty and profiteering. Well, perhaps it used to be this way some time ago but things are a bit different today. Credit card applications made by credit illiterate customers hurt the lender's bottom line as a result and the overall revenues decreased.
This prompted major credit industry participants to think of introducing more customer-friendly policies, or coming up with the so-called win-win situations.
What is a win-win solution? It is a guaranteed favorable outcome for all parties involved. We all know about credit card companies lowering APRs or eliminating annual fees or offering good cash back to attract more credit card applicants and so extend their customer base. In return companies do get a better feedback expressed in increasing business.
Today, a win-win situation has become one of the major objects in the sphere of credit education. Wells Fargo and some major credit companies searched for new ways of attracting young people, especially college cardholders, to credit education program, for which they performed an experiment.
The goal was to achieve win-win situation, namely to offer students some reward for their consent to participate in the education program. The reward was a mail offer of a 60-minute cell phone card and it appeared just great for many students to complete online credit education program.
What is the win-win essence of this operation? The students from the experimental group were granted a 60-minute free talk and the creditors enjoyed better payment records, in other words, full and well-timed credit card bills.
On completing the online courses of credit card education young people managed their credit cards more thoughtfully and responsibly. They carried lower credit card balances and paid them off more regularly.
So, educating people about credit cards and finances on the whole right at the start of their independent life has proved beneficial both to students and credit companies themselves. The experiment with the 60-minute phone card is a convincing example of the efficiency of win-win satiation, isn't it?
But the Center for Financial Services Innovation together with some major players such as Visa, Experian and Wells Fargo, is not satisfied with the achievement so far. Now they target all students, offering them to participate in the education program and make use of the win-win situation.
However, the lenders suggest another incentive for student credit card holders which, as they assume, will be even more popular and thus, stimulating. The new lure is free song downloads which are expected to boost the number of participants of the online credit education program.
So, can we still claim that credit companies' polices are unfair and predatory when we witness such a great concern about credit illiteracy among youngsters? What's more, the lenders do not only express the concern but also do their best to improve the situation. A win-win solution seems to be the best strategy so far, doesn't it?
Kristin
April 1, 2009, 12:43 pm
Unfortunately, you cannot be approved for a good credit card until you build a favorable credit history. Generally, it takes three to five years of responsible credit use to create a solid credit report and build up a score of 660-750. Special credit cards are available that can help you build your credit as long as you pay your bills on time and keep your card spending reasonably low. Most of these credit cards are secured, but you can also find several unsecured cards that can help you build your payment history.
If you are a student or a young adult working for a living, then you can apply for a Capital One limited credit card or a Capital One student credit card, both of which do not require a security deposit.
The MTV® Visa® Card from Capital One® has no annual fee and is designed for applicants with limited credit. It offers an average APR on purchases and a generous MTV point rewards program.
The Capital One Classic Platinum for Young Adults is intended for college students and young adults who want to take advantage of the card’s competitive APRs, moderate annual fees and additional benefits.
However, if you don’t have an income and you aren’t going to college, then most likely you won’t be approved. In this case, you may need to ask one of your parents to co-sign for one of these cards. If it is not possible to get a co-signer, then consider applying online for a secured card. The Secured Visa® Credit Card from Applied Bank offers a low APR on purchases and charges no setup fees. However, be prepared to provide a cash security deposit and pay an annual fee.
All of these credit cards are a good way to build credit fast and at a relatively low cost. After you build up a good credit history, you can then apply for one of the premium credit cards with the best rates, fees and rewards.
Discover® Student Card - Clear
- 0% Interest on Purchases for 6 months.
- No Annual Fee.
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and many more.
Discover® Student Tropical Beach Card
- 0% Interest on Purchases for 6 months.
- No Annual Fee.
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and many more.
Discover® Student Card
- 0% Interest on Purchases for 6 months.
- No Annual Fee.
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and many more.
Credit Cards eZine
For the past few years, college campuses have been a very promising market for banks and credit companies. There has been a lot of talk about the pros and cons of student credit card applications. While some people believe that student credit deals are nothing but a dangerous financial weapon, the others consider credit cards for students as the integral part of financial freedom. Anyway, credit deals for students were readily available in the recent years, but things have changed greatly. And now in tough economic times, youth folks may find it more difficult to get access to credit. So, the question becomes: how to apply for a student credit card in difficult economic times?
Click here to read more...All through our lives, we move from one stage to another, and just like that we move from no credit to excellent scores in hopes of getting low interest rates and deals with good terms. When beginners apply for their first credit card, they want to get access to credit and build a solid payment history that will let them borrow money on favorable terms. But even if your FICO is almost perfect, it doesn't mean that you can sit back and relax. Good credit requires much work to be done and if you have good scores, you should know how to manage your credit responsibly without getting far into debt. Read more tips on how to maintain your good credit rating.
Click here to read more...When choosing between numerous credit card applications, we want to get the most of our new card. Even though there’s no card that is right for everyone, many credit offers present some tempting features designed to entice you to submit your application online. Whether it’s a large amount of complimentary bonus rewards points or zero interest rates for a certain period of time, you may be enticed to apply for the product that doesn’t fit your individual needs. The question is, how to choose the card that is right for you? Read more about the terms and conditions you should look at when selecting the best credit card.
Click here to read more...
