Pa. college students and alumni are targeted by credit card companies more than almost any other state

Credit card companies are spending more money marketing to Pennsylvania college students, alumni, and employees than to those in at least 45 other states, according to a new survey.

Between 2016 and 2020, four credit card companies spent more than $12 million on marketing agreements with 32 colleges, universities, and affiliated organizations in the commonwealth, according to travel website Upgraded Points’ analysis of data from the Consumer Financial Protection Bureau (CFPB).

Of the 47 states with complete data, only California ranks higher than Pennsylvania in terms of money spent on college-related marketing, the analysis found.

New Jersey and Delaware rank 31st and 32nd respectively.

The findings come at a time when credit card debt has reached record levels nationwide. In all, U.S. consumers had $986 billion in credit card debt in the first quarter of 2023.

And while older generations carry more credit card debt on average, the youngest borrowers have seen their debt grow at a higher rate. The credit card debt of Generation Z — those 26 and younger — grew by more than 7% on average between May 2022 and February 2023, according to personal finance company Credit Karma.

Millennials’ debt grew the second fastest over the same period. Data also show that younger borrowers struggle to repay their debt and are more likely to fall into delinquency.

The good news: Credit card companies are limited in how they can market to borrowers under 21, as a result of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. The act also required that card issuers and universities report college marketing agreements.

Due in part to the CARD Act, the total spending on college credit card marketing has decreased over the past decade, dropping from $103.6 million in 2009 to $19.8 million in 2021.

Still, card issuers continue to spend money advertising to college students, graduates, and employees, with about 75% of college marketing dollars going to alumni associations from 2016 to 2020, the analysis found.

In 2020, the last year data for which data was available, Bank of America had credit card marketing agreements with Temple University, Villanova University, and the University of Delaware Alumni Association, according to CFPB data.

The Pennsylvania State Employees Credit Union, often abbreviated as PSECU, had agreements with more than a dozen universities, alumni organizations, and related organizations, including the Penn State Alumni Organization and the company that manages advertising at Penn State sporting events.