Credit card companies try to lure in every potential customer. Kids are also immensely attracted to them, thanks to the unique marketing strategies used by these companies. Some of these strategies are mainly aimed at children. This is because the credit card companies know that they can make a huge amount of money from children, mainly because they mostly have bad financial management and spend money lavishly.
So what are the techniques used by credit card companies that make your child have credit card debt? Given below are the eight most infamous techniques:
1. Sign Up Offers
The main process is gaining attention. Companies do that by offering special sign up bonuses. Some offer very low interest rates in the initial phase, which every person finds attractive.
Some companies even offer free insurance and other giveaways when you sign up for their service. Kids find such offers very tempting and sign up for the service.
2. Referral Bonus
What would you do if a credit card company tells you that you will get free bonuses if you get them more customers? Of course, you will get them more customers! This is a very popular trick that always works. They entice new customers by using old customers as bait. This thing tremendously works and greatly helps the credit card company.
3. Fashionable Cards
Believe it or not, some people actually keep phones for fashion reasons, because they consider them to be a fashion statement. Now, credit cards are coming in special skins and designs. You can get one with your favorite Barbie or car on it. Alluring? Well, to some!
4. Personalized Stuff
You are automatically tempted whenever you get an offer that looks tailor-made for you. Credit card companies use this tool to attract new customers. They make the banners that tell you that you can get the credit card of your choice, which will allow you to buy the things you want. Now, who wouldn’t want that?
5. Special Promotions
Credit card companies run special promotions for children that are aimed towards attracting them. For companies, it is all about changing potential customers into real customers. Some special promotions include low charges and gift hampers. On paper, such things look very exciting and people decide to have a credit card, neglecting the fact that they might have to suffer from credit card debt. If you are suffering from credit card debt, then Consolidated Credit can help pay off credit card debt faster.
6. Ease of Online Shopping
These days everything is online. Some websites require you to have a credit card in order to make payments. Credit card companies greatly count on this fact and show you green pastures. Online shopping is a major reason why people have credit cards, because some consider it a great substitute to buying from a physical store.
7. Special Discounts
What if you get 10% discount on your favorite restaurant every time you pay using your credit card? You’ll instantly grab it! Credit card companies get into special contracts with big outlets and offer you great discount when you shop from these partner outlets. So, how is it a bad thing? The fact is that these companies often do not clear all the terms and customers often end up paying more than the original amount in names of commissions and extra charges.
8. The Emotional Factor
Almost, every company brings the human and emotional factor into their marketing techniques these days. Credit card companies are not very different either. Some show credit card as making a social statement. Children are attracted by the offers that tell them that having a credit card would put them in an elite class. Such advertisements are attention grabbing and evoke emotions in people, especially in children.
It is our responsibility to guide our children on the right path and stop them from getting a credit card until they are able to use it properly. Children cannot carry the credit card debt burden and have to face severe problems because of it. Parents must clearly explain the disadvantages of credit card to them, so that kids understand the damage these cards can cause.
If you or your kids are already under heavy credit card debt, then Consolidated Credit can help pay off credit card debt faster.
The above article is written by Sarah James. She is associated with few finance related websites and blogs as their freelance writer. In her free time she writes articles related to finance and credit card debt etc. She advices us to go for Consolidated Credit which can help us pay off credit card debt faster.
I'm Louida from Atlanta, Georgia and I'm a mother of two daughters, blogger, and full time working mom at a Business Consulting Firm.
I love helping others learn how to start working from home on the internet free to supplement their current income.
I also blog at Productreviewmom.com
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