Question

Credit card vendors are allowed to setup booths on campus at the beginning of each semester. Students are enticed to apply for credit cards through various "offers" (Free tee-shirts, coffee mugs, etc.).

1. ​​​​​​​

1. Is this a good thing? Discuss your answer in terms of what the students get, what the vendors get and what the campus (student organizations) may get.
   
2. In addition, with all this "getting", are there any potential problems?

Answer 1

Student Gets

• Credit Card is very helpful for establish credit history.
• You need credit to build credit Score.
• And by obtaining credit card you can easily get credit and build credit score.
• Important factor of your credit score is length of credit score.
• So at young age you start to build credit score than at the time of getting serious loan you have long credit history.
• Credit card can become great friend at the time of Emergency.
• At the young age in the emergency you have not good amount of cash so credit card can help you.

Vendor Gets

• Collage student's are credit card company's prime prospect.
• By selling credit card to young student they will get assurance of their payment, if student fails to pay bill his parents surely bailout him or her.
• At young age your spending capacity is also high.
• You have long credit life ahead of you that means more interest and charges company can earn.

Campus Get

• As a campus you have more student will do cashless transaction through paying credit cards.
• Campus also get some fees & Commission from vendor for setting up booth.

By getting all above there is also following problem.

• By getting credit at early age students use it very irresponsible way and had a huge debt.
• If Students can not pay huge debt vendor will charge interest and it is very high.
• IF finally student can not pay and also his or her parents not bailed out than it becomes NPA for vendor.