At present credit card companies are making excessive profits and betake themselves to various tricks. Their goal is to tempt you with low rates and when you are trapped, they start deriving revenues. Credit companies make their victims even those who are not able to carry all the interest rates and therefore may be called perfidious. These statements are most common among American cardholders, especially those with low income.
On top of that, students and their teachers have also expressed dissatisfaction with the credit companies' deceptive practices.
They are taking pains to promote student credit card offers at campuses but the creditors' aim is not at all to help the youngsters to manage their personal finances or to establish a good credit history.
So, what is their aim and what revenues do they raise from student card deals? As a matter of fact, it is not the news that credit companies and banks prosper due to excessive credit card interest rates, the burden of which is carried by consumers.
But the most appalling thing is that credit companies stake on inexperienced students. And what is worse, colleges do not try to protect their students from dishonest creditors. Moreover, they support credit companies in promoting their plastic money deals at the campus.
Let's delve deeper into it and find out if creditors and schools derive mutual profit from distributing credit card deals. As researches show, students are usually offered unprofitable credit terms with high rates which make repayment almost impossible.
It is no surprise then that a great deal of students graduate from colleges up to their ears in credit card debt and become ineligible for a mortgage or other loans.
The lamentable thing is that the school itself sets up the students approving of creditors' practices. It goes without saying that making a deal with a credit card company, schools raise considerable profits for their needs.
In spite of the fact that schools are financially supplied by the state, they do not shun profiting from arrangements running into millions. And credit companies realize it, tempting schools with steady income and thus giving them a relief from the growing financial burden.
As both schools and credit companies declare, student credit card deals from Citibank or Capital One and many others are an excellent means of starting students' credit history as they offer favorable terms and exclusive care.
However, the results of the above-mentioned researches debunk this myth. Can we call it special care when the interest rates the students charged are much higher than, for instance, with business credit deals? Meanwhile, businessmen are much more aware of credit companies' tricks and can protect their credit score and financial well-being.
And no doubt, we cannot call the terms favorable when all those overstated interest rates plunge students into heavy debts.
Nevertheless, schools are allowed to give addresses and names of the students as well as their mail access and readily do it. Consequently, the number of students plunged into credit card debt increases rapidly, thus bringing fabulous revenues to credit companies and contributing to their prosperity.
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