The state of Ohio treasurer, Richard Cordray, and Democratic Attorney General candidate hopeful are campaigning together that they will restrict the aggressive or "predatory" credit card marketing of credit card companies on college campuses. Both men recently spoke during a press conference on the Ohio State University campus in Columbus. There are currently two bills before the State Congress. This follows a similar effort by the Illinois treasurer to close in on "The Sandwich Loophole" that we posted last week.

Credit card companies are particularly fond of the college demographic because most students are living on their own for the first time (18 to 21 years of age) and searching to establish a credit history. They also are somewhat naive to all their credit options. Typically, when students graduate from college not only have they racked up debt, which can lead to an ongoing interest income stream for card issuers, but they also tend to demonstrate brand loyalty into their twenties. In other words, they continue to stick with a financial institution for many of their personal finance needs.

By focusing solely on the novelty items that come with signing up for a new credit card, some cardholders forget that they ever applied for a credit card, which can damage credit scores due to unknown fees; like an annual fee that is charged to the account. Young people are particularly short on finances, so getting a Free T-Shirt or free novelty item is nice to have. At the start of the school year, when marketers are on campuses throughout the United States, students even post on message boards where they can get a cool giveaway just for providing their social security number. By legislating credit card marketers on college campuses, this will hopefully reduce the number of negative instances in which students find themselves in when they graduate. 

The best advice is simple: sign-up for a credit card because you need it and you like the terms. Remember, nothing is free in life.