Why Are Credit Card Companies Targeting Teens?
There are several reasons: A) Vulnerability-Teens are the most vulnerable and profitable. They spend in excess of their means. They spend on fast food, movies, clothes and music. All together, they spend a whopping $141 billion a year. B) Loyalty-Young consumers will remain loyal to their first cards. Lenders know this and aggressively market to teens to become their first credit card. Becoming their first credit card can ultimately lead to a customer for life. C) Easy Barrier of Entry- This means it’s easy to get in front of teens. Nearly every major university in the country has a huge financial deal with a credit card company. This can mean as much as $20 million. This is a major source of revenue to universities, especially state universities who are receiving less and less financial support from their state. And the worst part is that the worse the card terms are for students, the more money the school receives. How Do They Do It? Here’s how they get our children to purchase credi
