Student Credit Cards Interview with KFNN Radio Phoenix

By Media Relations Senior Industry Analyst Matt Schulz spoke on Friday, August 28, 2015 with Ken Morgan and Julie Dougherty of KFNN Radio Phoenix about the August 2015 Student Credit Cards survey. The interview and transcript are below.


Ken Morgan: Matt Schulz is joining us this morning. Matt is Senior Analyst at Good morning to you.

Matt Schulz: Good morning.

Morgan: It’s been so long ago since I had this experience. But I remember years ago at registration at school there would be some tables set up with some guy from Visa and somebody from Mastercard and they were trying to sign you up right away. Over the years we’ve been warned that’s not a good idea. Is it still not a good idea?

Schulz: It’s less of a bad idea than it was because the good news is that we have seen interest rates on student credit cards drop quite a bit over the last few years and we’ve also seen some now come with rewards and tools that can help students handle credit.

Morgan: Like what?

Julie Dougherty: Like maybe they give them a job or something to pay for the credit?

Schulz: That’s a whole other thing. But one of the things that they do is that you can get something like a text message alert telling you when you’re payment is due. Little things like that because we all know college students don’t have a whole lot of money and their to do lists are forever long so things like that can help them.

Morgan: And what if they get into that situation which all college students do – well, most anyway – where they need some extra cash and instead of calling mom and dad or whatever, they want to use the credit card – what’s the advantage or disadvantage? Or what is the system that’s going on with that right now?

Schulz: Well, really it’s harder for a college student to get a credit card than it used to be because the Federal Credit Card Act of 2009 changed things to where if you’re under 21 you have to either have to have a cosigner – so mom or dad or whoever – or you have to have proof of income in order to even get a card. So probably the best move would be to have discussion with your mom or dad and talk to them about what you might be able to do if you end up finding yourself in a situation where you need cash.

Morgan: Why are the lenders easing up on the regulations and making things better? Is the default rate low for those?

Schulz: I think it’s just the credit card marketplace is so competitive and, as they always have, banks see college students, even though they’re struggling now, these are folks who are probably going to end up having decent careers, make a little bit more money in the future and be customers that banks want. So it’s a way of establishing a relationship in the long-term.

Morgan: Matt Schulz joining us from Give us a couple of examples of what some of the credit card companies are offering right now?

Schulz: One of the most interesting ones is the BankAmericard Cash Rewards Credit Card for Students. It comes with a $100 sign-up bonus when you spend $100 in the first 90 days. And that’s something we haven’t really seen on college cards before, but it’s also something that can be dangerous because the last thing anyone should do is overspend on a credit card just to get rewards.

Morgan: So as you said at the outset, they’re less bad than they used to be. Not sure that’s recommendation, but ok. You can go to and get information about all kinds of credit cards and rewards and APRs and stuff like that. So it’s not the worst idea in the world as it used to be, I supposed. Matt Schulz, we appreciate your joining us this morning. Thanks so much.

Schulz: Thank you.

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