Free gifts have overwhelmingly become the key marketing strategy credit card companies use to target college students.

“They use trinkets, teasers and tricks to lure students to apply for credit,” said Brian Imus, state director of the Illinois Public Interest Research Group.

A March 2008 survey conducted by the U.S. Public Interest Group (PIRG) found that 76 percent of students reported stopping at a table on or near campus. Thirty-one percent of these students reported being offered/accepting a free gift. These free gifts ranged from T-shirts to a Subway sub.

“What better [way] to entice students than to offer something free?” said marketing instructor Sandy Domagalski. “It’s tangible; they can actually give it to you right then.”

When looking at what each credit card offers, Domagalski said they are typically all alike.

“It sometimes comes down to that free gift,” she said. “They are going to do whatever they can to make their credit card the one you choose immediately.”

Many students do not agree with the use of free gifts as marketing tools by credit card companies.

“Companies shouldn’t be allowed to offer gifts because it’s irresponsible and unethical on their part,” said junior accountancy major Christopher Jones.

Sharon Gaspar, a sophomore studio art major, admits this form of marketing does work.

“Let’s admit it: We’re easily drawn in by such things,” she said.

Even though students like free gifts, some think offers should be seen as warning signs.

“Students should take it as a sign that the company does not have very much confidence in the quality of their product or service when they feel they need to entice you by offering a gift that has nothing to do with the product or service,” Jones said.

Both Gaspar and Andrea Thompson, senior organizational management major, said if credit card companies are able to use free gifts, they should also tell students about the risks of opening an account.

According to the PIRG survey, 80 percent of respondents supported at least one reform principle of credit card marketing. Of that 80 percent, 36 percent supported a ban on free gifts.

In a press release from Sept. 8, Illinois State Treasurer Alexi Giannoulias announced he wants to crack down on credit card companies preying on college students by prohibiting on-campus giveaways and restricting access to student information.

“The bill is designed to make credit card marketing on college campuses more responsible and less predatory,” said Kati Phillips, spokesperson for the treasurer’s office.

The key part of the legislation would be to ban the use of free gifts.

“We’ve talked to a lot of students who have received the credit cards because they wanted a free sandwich,” Phillips said.

Phillips said many students do not realize the consequences.

“They think it’s free money or that they can just throw out the card and be done with it,” she said.

Part of the legislation would require some sort of financial education provided by the university

anytime a credit card company were to come on campus and make contact with students.

The legislation will be presented to the General Assembly in January.

Editor’s note: This is the third in a three-part series.