A solid credit score is super important for managing your finances. Whether you’re making a big purchase or facing tough times, good credit can save you money and make your life easier.
For millennials, it’s crucial to understand how credit cards work and how to use them responsibly. Getting a credit card is a great way to start building credit, but it can be tricky, especially if you’re in college.
Younger folks like us can sometimes have a hard time with credit cards. Our incomes may not be as high, and we might not have as much savings as older folks. As a result, we’re more likely to fall behind on credit card payments. In fact, our age group has had the highest rate of credit card debt troubles for the past couple of decades.
A new study by Upgraded Points looking at the U.S. states where credit card companies spend the most money marketing to students. During the study period, college organizations in Texas received $8,649,704 in marketing payments from credit card issuers. Among college organizations in all 47 states with complete data available, those in Texas received the 4th most in marketing payments from issuers.
To help protect young borrowers the Credit CARD Act was put into action in 2009. It put limits on how credit card companies can market to college students. This made it harder for them to send us tempting card offers and goodies to lure us in. As a result, the amount of money they spend on marketing to college students went down a lot.
Even with less marketing, credit card companies still focus on us through alumni associations, they want us to have access to credit early on. So, they pour a lot of money into targeting alumni groups. About three-quarters of all college credit card marketing payments go to alumni associations. That’s a whopping $89.7 million from 2016 to 2020.
Colleges and universities are on board with this marketing plan too. They make deals with credit card companies to let them reach out to their alumni and use school branding. In exchange, colleges get fees and royalties. Many credit card issuers and hundreds of higher education institutions have joined hands for these marketing agreements.
Some states get more credit card marketing love than others. California leads the pack with over $15 million spent on credit card marketing to college folks. But get this: it’s not just about population size. States like Kansas, Indiana, Alabama, and Iowa rank high on the list too, thanks to their well-known universities and sports programs.
How are you protecting yourself from being the next target? Share your thoughts on the Defender social media pages.