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March 28, 2008

There's no such thing as "free" pizza

College students want limits on credit card companies pitching plastic on campus.

That’s what most of the 1,500 students at 40 colleges — including the University of Maryland, College Park — said in a survey by U.S. Public Interest Research Group.

Among the findings:

 — More than two-thirds of students had one card or more. About one-third of these students said their parents paid their bills. Another third carried balances from month to month.

 — Among all those surveyed, one-quarter paid a late fee at least once,15 percent paid an over-the-limit fee, and 6 percent said their card was canceled for not paying their bill.

 — More than two-thirds of students opposed sharing student lists with card issuers. The lists contain dorm addresses, e-mail addresses and cell phone numbers.

— Three quarters of students stopped at tables on campus to consider card offers. Card issuers typically pitched cards while offering students T-shirts, blankets, sandwiches, pizza or iPod shuffle.

Card issuers target college students because consumers tend to be loyal to their first credit card. Plus, they know that parents will bail out a child who gets overwhelmed by debt.

So, when a card issuer offers you a "free" slice of pizza to sign up for a card, you can count on card companies are getting the better end of the deal.

Posted by Eileen Ambrose at 9:25 AM | | Comments (1)
Categories: Credit cards
        

Comments

I must have been a lucky one to get a low interest rate (6%) as well as a beach towel with my card. I still use it 4 years later.

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