Drexel credit card good despite editorial
School-sponsored card valuable to those of us who exercise financial responsibility; helps build credit
Jeff Scot
Issue date: 1/28/05 Section: Ed-Op
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I am going to say it. The new credit card is an excellent idea. Actually, it's something that I thought should have been done long ago. The most recognizable names in higher education have credit cards with their name and athletic logo stamped on the front including Maryland, Duke, Purdue, and Michigan to name only a few.
What is the downside to having a credit card available with the school logo on them? Surely some will be irresponsible with their card, which is a shame, but to think that they would only delve into the world of unsecured short-term lending because the card has the school logo emblazoned on the front is not likely.
Contrary to what The Triangle published on January 21, 2004 most students do not have over $100,000 of debt upon graduation, though some certainly do. The average debt of a graduating student at Drexel is $22,234 as published by College Board, or about 5% over the average of $21,200 for students from a 4-year private school according to Nellie Mae.
Most students have a credit card. All right, you caught me, most have more than one. And that means one thing, students spend money and use credit cards regardless of whether there is a dragon on their card or not. I think it's only reasonable of the university to try and get some of the cash that would otherwise be going to Starbucks if you have their Duetto card or to Shell if you carry their MasterCard from Citi.
And what does the student get from this? No more than with any other card, but at least you know there is some money going to Drexel and that there is some miniscule amount of promotion of the school's name.
Drexel's card is comparable to the cards that are endorsed by other school. The cards that Drexel and US bank are offering have interest rates just slightly above the industry average, but they also have no annual fee and a rewards program, even if it is lacking.
Credit cards aren't evil. They provide a valuable service. And unlike most services, you don't have to pay for this one. If you carry a balance, you pay for it, but as long as you don't charge more than you can pay you can save money through rewards. And being in the city, it's only prudent to carry a credit card rather than cash. Leave your cash in a high-interest savings account instead of padding your wallet.
What is the downside to having a credit card available with the school logo on them? Surely some will be irresponsible with their card, which is a shame, but to think that they would only delve into the world of unsecured short-term lending because the card has the school logo emblazoned on the front is not likely.
Contrary to what The Triangle published on January 21, 2004 most students do not have over $100,000 of debt upon graduation, though some certainly do. The average debt of a graduating student at Drexel is $22,234 as published by College Board, or about 5% over the average of $21,200 for students from a 4-year private school according to Nellie Mae.
Most students have a credit card. All right, you caught me, most have more than one. And that means one thing, students spend money and use credit cards regardless of whether there is a dragon on their card or not. I think it's only reasonable of the university to try and get some of the cash that would otherwise be going to Starbucks if you have their Duetto card or to Shell if you carry their MasterCard from Citi.
And what does the student get from this? No more than with any other card, but at least you know there is some money going to Drexel and that there is some miniscule amount of promotion of the school's name.
Drexel's card is comparable to the cards that are endorsed by other school. The cards that Drexel and US bank are offering have interest rates just slightly above the industry average, but they also have no annual fee and a rewards program, even if it is lacking.
Credit cards aren't evil. They provide a valuable service. And unlike most services, you don't have to pay for this one. If you carry a balance, you pay for it, but as long as you don't charge more than you can pay you can save money through rewards. And being in the city, it's only prudent to carry a credit card rather than cash. Leave your cash in a high-interest savings account instead of padding your wallet.
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