cards
College affinity cards that were the most popular among colleges, universities and many alumni associations are quickly becoming a thing of the past. While these cards will definitely not disappear beyond the horizon, the number of college affiliated cards being issued has definitely seen a sharp decline since the implementation of the Credit Card Accountability, Responsibility and Disclosure Act in 2009. Some of the colleges and universities that made a lot of money from marketing agreements with many lenders in the past were the University of South California, Penn State, University of Texas and University of Michigan.
Before the implantation of the CARD Act, it was not uncommon to see banks and other card lenders set up kiosks in the vicinity of colleges and universities and lure students to sign on the application form by offering freebies which ranged from concert tickets to T-shirts. According to the regulations of the CARD Act, credit card lenders cannot issue credit cards to students below the age of 21 without the consent of a co-signer (most often the parent). Students below the age of 21 eager to avail a credit card without a co-signer should show proof of sufficient monthly income to cover repayment costs and other charges on the credit card.
As a result of these stipulations, the number of cards issued to students saw a steep decline. The number of student cards issued in 2010 stood at 1.7 million as compared to 2009 when the number reached 2 million. The amount of money made by colleges and alumni associations from marketing agreements with banks also fell sharply, post this act.
