Although some credit card application forms found around campus might seem too good to be true by offering “automatic approval” to students, these are not necessarily unlawful according to Don Henderson, NIU Students’ Legal Assistance director.

Henderson recently examined several credit card applications available in residence halls, university buildings and the Village Commons Bookstore. Many contained broad approvals in large type yet contained statements in smaller type regarding needed credit history or income.

One American Express piece promised approval to seniors and graduate students with a $10,000-income job lined up for after graduation. This “automatic approval offer” is later explained as applying to those students with no negative credit history.

“You don’t need a job or credit history” to be approved, according to another AmEx application. Yet successful applicants, it reads, must be able to show a verifiable income source such as a savings account, grant, parents or summer job.

Citibank “says Yes to college students” on the front of its application, but then seems to indicate the opposite on its reverse side. This “special student automatic approval offer” applies only to enrolled students over age 18 with a “spotless” credit history.

But Hendersen said there is a larger issue behind these confusing and seemingly contradictory claims.

He said that students considering applying for credit cards should ask themselves, “Will this really help me get credit after I graduate?

“The selling point (of the cards) is not just—hey, this will be an easy way of getting a limited amount of money now. The big thing is to ease the way to get credit (on a larger scale, such as bank loans) later.”

Major merchandisers, such as Sears, issue their own credit cards and will not allow purchases with other credit cards, Henderson said.

“Before anyone starts the process, they need to read the fine print to see what they are getting into.”

Credit offers differ in their annual charges and interest rates, late fees, repayment arrangements and grace periods. State law requires these terms to be stated in credit card applications and sales pieces.

Credit cards, he said, are often helpful to persons who travel frequently.

Henderson said he “occasionally” sees students with credit card problems. Many clients he counsels regarding financial woes have medical bills not covered by insurance, family or automobile-related troubles.