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Thursday. April: 15, 1993
UNIVERSITY DAILY KANSAN
Credit card companies seek student market
Industry becoming more competitive on college campuses
By Traci Carl Special to the Kansan
Todd Wangler was too much of a risk for any credit card when he graduated from college.
But that was about ten years ago. Now, times have changed.
"I was assistant manager for Kmart after I graduated, but it took me two years to get a credit card." Wangler said.
In the past two years, credit card companies not only have been more willing to approve college students' applications, they have been fighting for their business, said Mike Palena, director of national operations for the College Credit Card Corporation, a Pennsylvania company that does research and marketing on college
campuses to help companies compete for the student credit-card market.
"In recent years the credit-card industry has become more competitive," Palena said. "That's why you see it through annual fees and low interest rates."
Wangler is now a sales representative for the corporation. Last week, he sat in front of Wesco Hall trying to interest students like Gretta Kearns, Valley Falls senior, in applying for a card. But Kearns wasn't interested. She already has a Visa, Mastercard and Discover card.
The College Credit Card Corporation and companies like it are responsible for the applications in the timetable, in the Kansas Union Bookstore bags, in the mail and at tables with sales representatives. Marketing applications for credit cards is how the corporation makes its money.
The credit-card corporation contacts groups like the Union or other campus organizations and offers
them a small commission in return for their sponsorship. The corporation then tries to get applications to students who are at least 18 years old.
Randy Parker, assistant store manager for the Kansas Union Bookstore, said the Union had sponsored Mastercard and Visa applications for more than six years. But about two years ago, American Express and Discovery Communications increased the competition and the number of company incentives.
number of company in the carry-
American Express and Citibank's
Mastercard and Visa promise cheap airfare and long distance savings with the approval of their cards. Wanger had candy, dictionary, mugs and other gifts in exchange for filling out an application for companies such as Amoco and AT&T.
Parker said the bookstore was selective in sponsoring credit-card companies because of their aggressiveness.
"We don't do it very often because typically, in my opinion, they getnexperienced salespeople who promise
the earth, the sun and the moon," he said.
But Palena said that the representatives were the reason credit-card companies had been successful.
He said that students had not been a major credit risk.
"Students are more educated about cards because the marketing campaigns toward them have made them become a better consumer." Palma et al.
Wangler said students realized that they not only needed to establish credit while in school, but that they needed to establish good credit.
Patty Gaston, product development manager for First Tier Bank, Omaha, said her company decided to target students two years ago.
"College students are a good market because research shows you keep your very first card the longest," Gaston said.
First Tier expects the students, not their parents, to be responsible for payments, Gaston said, and the bank
has not had any major problems with collecting bills. But it sets a low limit, usually around $500, on the amount card holders can charge, she said.
First Tier is marketed by On Campus Marketing, a company like the corporation that markets on the KU campus.
Palena said companies' increased interest in the student market had created a small boost for his company, but he said he didn't think new companies would be lured into the credit-card marketing field.
As the oldest and largest company to market credit cards, the College Credit Card Corporation works with about 1,500 college campuses, Palena said. And, as methods of payment become more complicated, the corporation will serve as supplementary educator of personal accounting.
"The future is wide open," Palena said. "As people become more sophisticated in their purchasing power, education will be more and more of our business."
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The Etc. Shop has new shipments of T-Shirts, Boxers and Hats from your favorite shows
Home improvement Ren & Stimpy Northern Exposure plus many more
KUSTUDENT BIOETHICS CLUB
Wm. G. Bartholome, MD.
Speaking on
"Patients' Rights: But what if the patient is a child?"
On tuesday, April 20th at 7:00 pm in Parlor B of Kansas Union
Friday, April 16th
9 - 4 P.M. Cultural Exposition in front of Stauffer-Flint
7:30 P.M.Festival of Nations Cultural show in Woodruff Auditorium Doors open at 7:00.
Admission is FREE!
Saturday, April 17th
8:30 P.M. ISA Party
307 W. 23 rd St.
$4 includes drinks
(please don't park at Checkers)
PRESENTED BY THE
PRESENTED BY THE International Students Association
You know it's time to trade up to a new computer when...
...your friends brag about software upgrades and memory capacity while you'd be thrilled if your computer could simply spell check!
Introducing the Apple Trade-Up Program!
Do you have an old computer that's still in good shape, but just doesn't get the job done anymore?
For a limited time you will have the opportunity to trade that old model (Apple or IBM compatable) in for a new Macintosh at the Union Technology Center in the Burge Union. Here's how:
Step 1: Call the following toll-free number and speak to a representative who will estimate what your old system is worth: 1-800-992-0798.
Step 2: Set up an appointment with the representative on either April 19th or April 20. On these dates representatives will be In the Union Tech center to evaluate your old machine.
Step 3: Receive a voucher for the amount of money your system is worth, good toward any Macintosh system offered by the Union Tech Center.
Step 4: Bring your voucher into the Union Tech Center anytime before May 5, 1993 and use it towards the purchase of a Macintosh Computer.
The Apple Trade-Up Program is a limited time offer, call today 1-800-992-0798. To qualify you must be a student, faculty or staff member of the University of Kansas and follow the purchase requirements available at the Union Tech Center.
UNION TECH CENTER Level 3 Burge Union 864-5690