Students Use of Credit Cards Decreasing

November 30, 2011
Middletown Journal 
credit card news

Roughly 40 percent of college students had their own credit card in spring 2011, down from 57 percent a decade earlier, the Student Monitor Financial Services Study determined. A report released earlier this year by the Federal Reserve, meanwhile, showed that the number of marketing agreements between issuers of credit cards and colleges, alumni associations, and other groups with university affiliations is falling. Such partnerships declined 4 percent to 1,004 in 2010 from 1,045 the year before, according to the Fed research, with most affinity credit cards now issued to alumni and non-students. The changes were driven by the Credit Card Accountability, Responsibility and Disclosure Act of 2009, which bars students under the age of 21 from getting a credit card unless they have a co-signer or can demonstrate their ability to pay each month on their own. The law prompted big credit card issuers to abandon their aggressive marketing campaigns on college campuses.
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