2023-07-30 12:00:00
Travel and finance site UpgradedPoints published an analysis of the US states where credit card companies spend the most on student marketing, with California topping the list, with the largest payments amounting to more than $15 million dollars between 2016 and 2020.
“With the benefits that good credit can offer, It is important that young people start and learn to maintain lines of credit responsibly. Opening and managing a credit card is a great way to do that, and credit card issuers are often looking to market to the next generation of consumers,” says the UpgradedPoints report. “However, for many young adults, especially those in college, getting access to credit can be challenging.
According to the study, the common risk for younger borrowers is that they default more frequently than their older counterparts: “With lower incomes and fewer savings than older people who are more established in their careers, credit card users younger credit may have a harder time paying off their balances”.
For most of the last 2 decades, borrowers ages 18-29 have had the highest proportion of credit card debt in transition to delinquency of any age cohort. Delinquency among this group has grown from a low of 4.9% in mid-2021 to 8.3% in the first quarter of 2023.
One of the other protections in the 2009 Credit Card Act for young borrowers was to set new limits on how credit card companies market to college students. For example, credit card companies were more restricted in their ability to send card offers to students or to offer gifts or other incentives for students to request a plastic.
Issuers have targeted colleges and universities in some states more than others to expand their marketing reach. California is home to several large and notable university institutions. who collectively lead the nation with more than $15 million in credit card marketing payments received from issuers. And while other highly populated states rank high, population isn’t the only indicator. States like Kansas, Indiana, Alabama, and Iowa rank among the top states for credit card marketing payments collected by universities.
States where credit card companies spend the most on student marketing:
1. California, $15,513,212
2. Pennsylvania, $12,186,751
3. Kansas, $10,580,884
4. Texas, $8,649,704
5. Indiana, $7,926,760
6. Michigan, $7,649,756
7. North Carolina, $5,495,096
8. Georgia, 4,564,899
9. New York, $4,186,019
10. Illinois, $3,571,524
To see the complete table and details regarding the methodology, enter here.
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