Survey Finds Credit Card Use Rampant on Campus

A study conducted by public interest group Truth About Credit found that a significant number of college students are using credit cards and that related marketing is fierce on campuses nationwide.

The survey sampled 1,500 students at 40 large and small universities throughout the United States, asking respondents a series of questions ranging from credit card regulation to credit card use and marketing.

The group found that 66% of students reported having at least one credit card, and just 36% of those said they paid their credit card bills in full every month.

Interestingly, nearly 1 in 4 students (24%) said they used their credit card to pay for their college tuition, and college seniors had roughly double the debt of freshman.

Additionally, 25% of respondents said they paid at least one late fee, 15% said they paid an over-the-limit fee at some point, and 6% said they had had a credit card cancelled for non-payment.

Nearly one in five (19%) actually cancelled a credit card on their own that was in good standing, perhaps because it was burden or a temptation.

With regard to credit card marketing on campus, 76% reported stopping at a sales table on or near campus, and 31% of those who stopped were offered or accepted a free gift, with a t-shirt being the most common giveaway.

Related to that, 46% of students supported limits on how many days credit card companies can “table” each semester, and 36% supported a ban on free gifts that often lure students into credit cards they don’t need.

Lastly, 38% supported a ban on credit card fees paid to schools or school groups and 74% supported the marketing of credit cards with fair terms and conditions only.

Unfortunately, many students fall into credit card debt by accepting “free offers” because of their lack of cash to begin with, often without a clear understanding of how credit cards work.

(photo: acidcookie)

Related Topics:

1. New Law to Corral Credit Card Companies on Campus
2. One in Four College Students Graduates with $5,000 in Credit Card Debt
3. College Students and Credit Card Debt
4. Colleges and Credit Card Companies Have Cozy Relationship
5. Study Finds Credit Card Issuers Target Heaviest Users