Free Ethical Case Study On Affinity Credit Cards Essay Sample

Question 5.1

At first, I would like to point out that loan facilities available to students grant them a lot of opportunities, including a chance to pay for their education, rent an apartment and/or cover other current living expenses, i.e. food, transport, medical insurance, etc.
Taking into consideration the fact that a student going to college does not have much time to work and earn money, a credit card solution may be an acceptable option for the student in order to obtain desired education in the first place that will allow him/her to earn more income in the future. Afterwards, a part of the income will be aimed at loan repayment.
In this regard, I believe universities and colleges that offer funding options for potential applicants, including an affinity credit card option, have a very strong competitive advantage. Furthermore, I do not see anything wrong in universities entering into agreements to offer affinity credit cards to their students due to the following reason.
Firstly, the university that has corporate relations with a provider of affinity credit cards only offers an option for the students. I would like to stress that it is vital to ensure that such a university does not persuade its students to enter into any affinity credit card relations, as it will be very unethical on its behalf.
Secondly, the university that offers affinity credit cards has an opportunity to accumulate extra funds that may be used for university needs, including construction and maintenance of sport complexes, libraries, granting scholarships, raising a payroll, etc.
Thus, in my view, there is nothing negative regarding the university having corporate relations with the provider of affinity credit cards, if such a university transparently discloses such relations, as well as how the accumulated bonuses are spent.

Question 5.2

I am strongly convinced that it should be every university’s obligation to education its students about credit card misuse and debt management taking into account current business trends. As an amount of goods and services bought on credit is constantly increasing, students have to know how to manage loan debts and follow payment discipline regardless of having or not having affinity credit cards.
At the same time, the universities have to teach their students how to choose the most beneficial loan offer that meets their expectations and is in line with their financial position. Moreover, this knowledge may also be of great use for the students in the future when they consider various car loan and mortgage proposals.
In addition, every student should know how the credit card mechanism functions without regard to his/her major. It is obvious that students receiving their major in business, finance or economics are more likely to familiarize themselves with loan terms and condition. Yet it might be more difficult for future lawyers, doctors, teachers or pilots to understand proposed loan terms and conditions. Thus, the universities may assist them in becoming more financially literate.

Question 5.3

In my opinion, it is impossible for a university having affinity credit card relations and adopting an education program on credit card misuse and debt management to avoid a conflict of interests. Still, such a conflict of interests may be controlled and minimized if the university has a transparent financial policy and takes a role of a financial advisor for its students who provides knowledge on credit cards and does not persuade to obtain them.