Fewer Signing Up For College Credit Cards

Published

March 10, 2015

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The Federal Reserve Board found that the number of credit cards issued to consumers through universities and alumni groups dipped 17 percent in 2010, according to a report from USA Today. In addition, the number of agreements between these organizations and credit card lenders fell as well, though by a less substantial 4 percent. In all, there are now just 1,004 such accords between these groups and financial institutions.

However, the number of these cards is still substantial, the report said. Despite the fact that lenders sent out a total of 340,409 fewer new accounts between 2009 and 2010, the total still stood at 1.7 million, the report said. As such, these groups received a total of $73.3 million from lenders last year, down 13 percent from the $84.5 million the year before.

Part of the reason for the decline is likely that new federal regulations prevent lenders from extending credit cards to those under the age of 21 unless they have an adult co-signer or can prove they have the income to pay their own bills.

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