...USC professor Raphael Bostic, an expert on fair trade and lending, explained that affinity cards are just one part of the long-term marketing strategies employed by credit card companies. But Bostic also said the deals raise questions about whether schools are encouraging students to obtain credit cards that could later land them in financial trouble.
"What credit card companies are trying to do is get students affiliated with their products early and they hope those relationships are enduring," Bostic said. "It is a question of, 'does this benefit the students as much as it benefits the company?'" Bank of America offers "premiums" or giveaways for students or alumni who fill out a card application. Last year's applicants received a free USC blanket. These giveaways are a point of contention for critics who say young people are easily lured by free merchandise but do not understand the risks associated with credit cards...
September 23, 2008